Integrating Target Costing and Artificial Intelligence for Sustainable Industrial

Abstract

Target costing and artificial intelligence (AI) offers a strategic approach to promoting
sustainability across various industries. Target costing enables companies to align production
costs with competitive market prices, while AI enhances this process through data-driven
decision-making, production optimization, and operational efficiency. In the context of
Morocco’s manufacturing industry, this synergy supports adaptation to local market needs and
regulatory compliance for sustainable practices. In the construction sector, AI applications in
green building projects enable more accurate cost predictions and efficient resource
management. AI also contributes to achieving the Sustainable Development Goals (SDGs)
through its applications in finance, agriculture, and healthcare. A case study at PT Mamani Jaya
Berkah demonstrates that implementing target costing, supported by value engineering analysis
and effective decision-making, positively impacts company profit growth. However, challenges
remain, including the need for more comprehensive documentation and greater awareness of
ethical implications in AI-driven sustainability efforts.