Abstract

This study analyses the potential applications of artificial intelligence in supporting variable cost budgeting in small and medium-sized enterprises using spreadsheet-based systems. An exploratory experimental approach was adopted in the study to assess whether an AI tool can derive mathematical functions that accurately reflect the relationship between variable costs and quantity, considering various patterns of cost variability. The results of the study indicate that the quadratic functions generated by AI exhibit varying degree of fit, suggesting their potential usefulness in budgeting processes. AI has the potential to reduce the labour intensity and improve the responsiveness of budgeting; however, its results require careful validation prior to implementation.

Recommended Citation

Siemionek-Lepczyńska, A., Chalastra, M. & Lepczyński, B.(2026). The Application of AI in Variable Cost Budgeting in SMEs: An Experiment Using ChatGPT and Spreadsheets. In M. Valenta, B. Mannová, R. Pergl, A. Przybylek, M. Lang, H. Linger, C. Schneider, N. Iivari, & E. Insfran (Eds.), Making ISD Sustainable: Reloaded with AI and Automation (ISD2026 Proceedings). Prague, Czech Republic: Czech Technical University in Prague. ISBN: 978-80-01-07585-2. https://doi.org/10.62036/ISD.2026.157

Paper Type

Poster

DOI

10.62036/ISD.2026.157

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The Application of AI in Variable Cost Budgeting in SMEs: An Experiment Using ChatGPT and Spreadsheets

This study analyses the potential applications of artificial intelligence in supporting variable cost budgeting in small and medium-sized enterprises using spreadsheet-based systems. An exploratory experimental approach was adopted in the study to assess whether an AI tool can derive mathematical functions that accurately reflect the relationship between variable costs and quantity, considering various patterns of cost variability. The results of the study indicate that the quadratic functions generated by AI exhibit varying degree of fit, suggesting their potential usefulness in budgeting processes. AI has the potential to reduce the labour intensity and improve the responsiveness of budgeting; however, its results require careful validation prior to implementation.