Influence Of Artificial Intelligence on Cost Efficiency and Organizational Performance with The Mediating Role of Cost Management Control Systems in Transformational Organizations

Abstract

Artificial intelligence significantly influences cost efficiency and organizational performance, with the cost management control system playing a mediating role. To investigate the relationship between artificial intelligence and organization performance and cost management control systems in digital transformation sector organizations. The positivist methodology forms the foundation of this research. This research emphasizes quantitative analysis, commonly employed in social research. Artificial intelligence consists of five elements: strategy, organization, methods, information, and culture. The used scales for cost efficiency, organization performance, and cost management control systems. The utilized five-point Likert scales. They used stratified random sampling to select transformational sectors organizations for the research survey. The study involved a sample size of 370, and we utilized SPSS and PLS Smart software to analyze the collected data and apply various parameters. The findings demonstrate a satisfactory correlation between artificial intelligence, cost efficiency, organization performance, and cost management control systems, with values of 0.520**, 0.290**, and 0.393**. The hypotheses H1, H3, H4, and H5 received support, aligning with expectations. We confirmed that artificial intelligence positively impacted cost efficiency, organization performance, and cost management control systems. However, we did not support H2, which suggested a positive relationship between artificial intelligence and organization performance. In conclusion, this study has provided a comprehensive examination of the influence of artificial intelligence on cost efficiency and organization performance and the mediating role of cost management control systems in digital transformation sector organizations. Strong measurements, structural model evaluations, hypothesis testing, and mediation analyses all help us learn more about the complicated dynamics at play in organization performance and cost management control systems. Further investigations could explore aspects of the relationships studied here and potential moderating factors beyond consumer innovation and knowledge sharing. In essence, this research contributes to the existing literature by elucidating the intricate interplay between the use of technology, such as AI, and the implementation of digital strategies.

Key words: Artificial Intelligence, Cost efficiency, organizational Performance, Cost management control system.