Managerial Cost Control Adaptation in Response to AI-Driven Workflow Automation in Medium Enterprises

Sri Dwi Estiningrum

doi:10.55927/fjst.v4i12.339

Authors

Sri Dwi Estiningrum UIN Sayyid Ali Rahmatullah Tulungagung

DOI:

https://doi.org/10.55927/fjst.v4i12.339

Keywords:

Managerial Cost Control, Adaptation, AI-Driven Workflow, Automation, Medium Enterprises

Abstract

This study examines how managers adapt cost control systems when midsize enterprises adopt AI-based workflow automation. Using an interpretive qualitative case study approach, data were collected through in-depth interviews with eight financial, operational, and technology managers in Surabaya, supported by process observations and cost-related document analysis. Thematic analysis reveals that AI automation shifts cost structures from labor-intensive expenses to technology and system-integration costs, requiring more flexible, real-time, and analytics-driven cost control. Managerial responses include budgeting adjustments, repositioning cost centers, developing new performance indicators, and strengthening digital competencies for cost monitoring. The study concludes that effective cost control adaptation depends on digital readiness, data quality, and managers’ ability to integrate AI into decision-making. These findings enrich management accounting literature on cost control transformation in the era of intelligent automation and offer practical guidance for midsize firms in designing more responsive cost control strategies.

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