Setting up an organisation for Artificial Intelligence Excellence

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Hendrik Reese
Partner Responsible AI at PwC Germany
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The potential of Artificial Intelligence (AI) can only be fully realised by establishing adaptable, flexible, and diverse organisational structures. The multitude of use cases has sparked a rush, as businesses have recognised the opportunities to differentiate themselves from competitors by reducing costs and improving their products and services. However, examples have taught us that not all companies return from their AI journey with success.

Today, businesses face various bottlenecks in realizing the potential of AI, with some of the most prominent being the challenge of adapting existing organizational structures and achieving cultural and strategic alignment. Foundational organisational processes for AI, such as IT and data management, but also governance processes for compliance and risk management, must be set up well for the organisation to achieve success. These organisational structures need to be placed into a work culture that is open to AI innovation, with cross-functional collaboration being essential for realising AI excellence.

AI-Organisation Building Blocks: Strong Foundations Build on a Culture Open to AI

Change in an organisation does not occur overnight, and it can only be successful if it is based on a strong foundation. To effectively leverage AI, organisations must have a strong technical and governance foundation. This includes robust IT and data management, scalable infrastructure, and stringent security measures. Strong IT management facilitates the digital infrastructure and the software stack in which AI is integrated. It ensures the efficient deployment, operation, and maintenance of AI systems through robust software packages, hardware, cloud environments, and networks. With robust data management, the quality, accessibility, and availability of data are guaranteed in order to seamlessly facilitate the development and adaptation of AI models.

A second pillar is a robust governance foundation to support the evaluation of emerging AI use cases against criteria for performance, financial impact, and ethical and legal requirements. Not only does this support compliance with requirements from the upcoming EU AI Act, but it also supports trustworthy innovation and scaling of AI. This means having established risk management processes, compliance functions, and the right roles and responsibilities.

Besides these foundations, having a company culture that is open to AI innovation is important. Business units should embrace collaboration, recognise AI’s potential for improving their daily work, and adopt an agile mindset. Individual employees will need to embrace AI tools, share their business expertise, and proactively drive AI innovation. This will lead to fostering a collaborative AI culture in your organisation.

Organisational Integration

Top management and the organisational structure play a crucial role in enabling a cultural shift and driving AI adoption. When setting up an organisation for AI excellence, different approaches can be considered. A centralised top-down approach allows for control but may not lead to necessary cultural change and subsequent ownership over AI innovation. A decentralised approach enables business units to bring forward their own competencies but may lack control over operations. A Hub-and-Spoke hybrid model introduces a central hub for control, strategic responsibility, and operational support. This model combines centralising essential AI knowledge while maintaining operational responsibility within the business units. A central hub can facilitate collaboration and innovation, while the spokes implement support for each unit. It acts as a central point with the responsibility to collect data, analyse use cases, enable collaboration between business units, and collect and share best practices.