Leveraging AI and Technology for Effective Budgeting and Cost Control: Enhancing Retail Revenue in Azerbaijan

Abstract

The digital revolution is starting to change operational and financial processes in many various sectors, with Artificial Intelligence (AI) leading the front stage. The recent year’s statistics and observations show that the financial landscape changed profoundly driven by the convergence of AI and digital technologies. The core functions of financial management such as cost control and budgeting are starting their structure due to the rapid use of digital technologies. The most significant advancement of these digital technologies is Artificial Technologies (AI) that is transforming the core operations of the financial management including resource allocation, financial forecasting, budget planning and cost control. Real time adjustments and accurate forecasting, cost controlling are essential for effective financial strategies in the global business environment that is full of volatility and uncertainty (Akkani, 2024). Historical models and static analysis are considered as traditional methods that work ineffectively and show the slow response to the dynamic market changes. The parts of budgeting and cost control process are outdated and frequently result in errors, inefficiencies and a reactive approach to the financial management process. On the reverse side, AI driven systems allow businesses to start continually adjusted and dynamic financial planning processes applying machine learning and predictive analytics to provide more adaptable and precise forecasts (Jain & Kulkarni, 2023). In the emerging economies like Azerbaijan, the development of the digital maturity is still crucial for improving the retail sector budgeting and cos control system with using the potential of AI. The businesses are looking for ways to increase competitiveness and cost effectiveness, they are starting to research and trying to understand how AI can change the budgeting and cost control process in financial management. This thesis analyses how digital technologies and AI might improve the cost control and budgeting process in Azerbaijan’s retail industries, purpose to assess the practical strategies, advantages and readiness for integration. Across different economics and industries, AI has developed as a powerful accelerator of data driven decision-making, strategical agility and operational efficiency. Nowadays a lot of cases show that financial forecasting, cost control and budgeting process requires comparing the traditional models and dynamic, technological statistical approaches (Akkani, 2024; Jain&Kulkarni, 2023).