Having advised companies across industries on cost transformations for more than two decades, I’ve seen a growing divide emerge as AI and agentic systems reshape the economics of doing business. It’s clear that most companies still struggle to turn AI pilots into profits. Yet a small number of companies are succeeding, in part by linking their AI and cost-reduction efforts.
In a recent BCG analysis, this group of AI leaders delivers 3 times greater cost reduction, 1.6 times higher EBIT margins, and 2.7 times greater return on invested capital than their peers. They’re also creating other advantages, such as increasing transparency, enabling faster decisions, and reallocating capital more effectively to fuel growth and innovation.
In that way, these companies are compounding their cost advantages from AI and improving overall performance. They show what’s possible and offer insights into how others can catch up.
Challenges to overcome
We see some common challenges across cost programs built around AI:
