This paper investigates the opportunity for energy saving in a 3-phase induction motor (IM) driving pump load and proposes an improved loss model control (LMC). Compared with other power loss reduction algorithms for IM, the presented one has the advantages of fast response, high accuracy, and simplicity of implementation. The performance of LMC depends mainly on the accuracy of modeling the motor drive and losses. In this paper, a detailed loss-model for the IM drive has been developed. The model considers inverter voltage harmonics and magnetic saturation effects using closed-form equations. On that basis, an ANN controller is synthesized and learned offline to determine the optimal flux level that achieves maximum drive efficiency. Simulation and experimental studies are performed on 5.5 kW test motor using proposed control scheme. The test results are provided and compared with the fixed flux operation to validate the effectiveness.