A system and method for controlling an AC motor drive includes a control system programmed with an algorithm configured to optimize operation of the motor drive. Specifically, the control system is programmed to input an initial voltage-frequency command to the drive. The initial voltage-frequency command includes a voltage reference and a frequency reference corresponding to an operating point of an initial voltage/frequency (V/Hz) curve. The control system monitors a real-time output of the drive, modifies the voltage reference based on the real-time output of the drive, and transmits a modified voltage-frequency command to the drive. The modified voltage-frequency command corresponds to an operating point of a modified V/Hz curve defined by the modified voltage reference and the initial V/Hz curve.