BPR ANALYSIS OF OPERATING COSTS OF COMPANY X USING ARTIFICIAL INTELLIGENCE (AI) TECHNOLOGY

Abstract

In the increasingly globalized business, operational efficiency is a critical component for the success and longevity of company. The purpose of this study is to analyze the impact of Business Process Re-engineering (BPR) based on artificial intelligence (AI) on operational efficiency in company X. Through the use of descriptive analysis and literature review, this study investigates how integrating AI technology might help businesses reduce operational costs, increase productivity, and minimize losses. According to the study's findings, Company X may cut production costs by 20%, shorten production cycle times by 25%, and boost raw material usage efficiency by 15% by integrating AI into its BPR process. Additionally, by optimizing administrative procedures and managing energy more effectively, AI-based automation has been able to cut overhead expenses by 10%. However, its implementation also provides long-term benefits for environmental and operational sustainability, such a 15% reduction in carbon emissions. The study also identified key challenges, including resistance to change and the need for significant initial investment. With the right risk mitigation strategies, Company X successfully overcame these obstacles and demonstrated that the combination of BPR and AI not only improves operational efficiency but also creates significant added value for the company's sustainability. These findings provide strategic guidance for other companies looking to adopt similar technologies to enhance their competitiveness.