Abstract

Higher institutions of learning face ongoing financial challenges, and finding ways to reduce costs while
maintaining educational quality is crucial. This study therefore assessed the use of AI in cost reduction
management in educational institutions. It put forward that the integration of artificial intelligence (AI) into cost
reduction management holds promise for optimizing resource allocation, streamlining processes, and improving
efficiency. Thus, AI can be effectively integrated into cost reduction management in universities through
administrative task automation. By automating tasks such as data entry, document processing, and scheduling,
universities can streamline their operations and allocate resources more efficiently. Also, AI can contribute to cost
reduction through smart energy management. By utilizing AI-driven energy management systems, higher
institutions of learning can optimize energy consumption, reduce waste, and lower utility costs. Furthermore, by
leveraging AI-driven decision-making and optimization algorithms, universities can make informed procurement
decisions, leading to cost savings. This is because, AI technologies, such as machine learning algorithms, can
automate financial analysis processes for learning institutions. By automating budgeting, forecasting, and expense
tracking, universities can improve financial management, potentially reducing costs and improving overall
financial efficiency. The integration of AI into cost reduction management therefore, offers significant potential for
enhancing the economic aspects of education