BCG’s Driving Sustainable Cost Advantage with AI (May 2025) explains how CEOs can turn AI from a hype-driven tool into a sustainable source of cost competitiveness. Only 48% of cost targets are typically met, yet 93% of executives view AI as key to cost reduction within 18 months. The report identifies four high-impact patterns: codified knowledge (e.g., marketing and software), customer interactions (e.g., AI chatbots reducing FTE costs by 20%), large supply bases (e.g., contract automation cutting review time from two days to 20 minutes), and field forces (e.g., 40%+ maintenance savings). BCG stresses that success requires “cashing the check” by embedding process change, reskilling teams, managing hidden tech costs, and integrating AI savings into budgets. Firms that track AI-enabled P&L impact and adopt disciplined governance will build structural, lasting cost advantages.

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