Pragmatiq AI News — AI Trends and Business Insights in Estonia

How Arens Uncovered €130,000 in Potential Savings through Targeted AI Automation

In the first week of July, Andres Gavriljuk—the Founder of Pragmatiq AI and an expert in Digital Automation and AI, conducted an in-depth training on AI implementation strategies at Arens, Estonia's largest kitchen manufacturer. This training was held in collaboration with colleagues from AI Eesti, and the results were eye-opening.

The Automation Paradox in Manufacturing

Arens has established itself as a leader in production efficiency, successfully automating about 80% of its manufacturing processes. This impressive level of automation enables the company to produce approximately 40 kitchens per day. However, despite this advanced manufacturing capability, Arens was operating at only 70% of its total capacity.
The challenge lied in essential business areas outside of production—such as sales, customer service, and project management—which remain largely manual. These processes rely heavily on human labor, creating a hidden bottleneck that hinders scalability and efficiency.

Identifying the Bottlenecks

During our two-day intensive training, cross-functional teams identified several critical areas where manual processes were significantly hindering growth:

1. Approximately 300 social media inquiries go unanswered each month due to a lack of resources and systematic response mechanisms.
2. Sales personnel spend 1.5 to 2 hours daily collecting and compiling information to respond to customer inquiries.
3. Designers and customer support teams are consistently overwhelmed by repetitive technical questions.
4. Manual order processing is time-consuming and consumes considerable human resources across multiple departments.

The €130,000 AI Opportunity

Our strategy session clearly quantified these bottlenecks, highlighting an opportunity to realize approximately €130,000 in annual operational cost savings through targeted AI solutions. By implementing specific AI-driven tools—such as automated response systems, intelligent chatbots, and streamlined data management—Arens can significantly reduce its operational costs, enhance customer response times, and improve overall efficiency.

Broader Insights: AI Beyond the Factory Floor

Our experience with Arens highlights a broader trend in the Estonian industry. Many manufacturers excel in automating their production lines but are reluctant to apply similar strategies to non-production areas. This hesitation often arises from uncertainty about the return on investment (ROI) or the complexity of implementation.

Why this matters in 2025?

As markets become increasingly competitive, the companies that scale successfully will be those that harness AI for competitive advantages throughout their entire business ecosystem, including sales, customer service, project management, not just their production lines.

The Path to Strategic Growth

Estonian manufacturers, such as Arens, are poised for substantial growth by expanding their automation strategies beyond just production. By strategically applying AI tools to essential business processes, they can achieve significant efficiency improvements and cost savings. This, in turn, enhances their competitive strength in an increasingly challenging market.

Are you ready to uncover your hidden automation opportunities?
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