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AI Strategy Options Matrix

Tool
By Tim KappPublished September 20, 2024

A decision framework for boards and executives to evaluate AI initiatives across innovation, governance, and risk dimensions.

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A practical decision-making framework for enterprise AI strategy.

Overview

The AI Strategy Options Matrix helps organizations evaluate AI initiatives across three critical dimensions:

  • Innovation Potential: Technical feasibility and competitive advantage
  • Governance Requirements: Risk management and compliance needs
  • Resource Allocation: Budget, talent, and infrastructure requirements

Framework Components

Innovation Scoring

  • Technical maturity assessment
  • Market opportunity evaluation
  • Competitive differentiation potential

Governance Mapping

  • Regulatory compliance requirements
  • Risk tolerance evaluation
  • Ethical considerations

Resource Planning

  • Budget allocation guidelines
  • Talent acquisition needs
  • Infrastructure requirements

Implementation Process

  1. Assess Current State: Map existing AI capabilities and initiatives
  2. Score New Initiatives: Evaluate proposals using the matrix criteria
  3. Prioritize Investments: Rank initiatives by strategic value
  4. Monitor Progress: Track implementation against matrix predictions

Key Benefits

  • Structured Decision Making: Reduces bias in AI investment decisions
  • Risk Management: Identifies governance requirements upfront
  • Resource Optimization: Ensures efficient allocation of limited resources
  • Strategic Alignment: Connects AI initiatives to business outcomes

This framework has been used by Fortune 500 companies and government agencies to structure their AI strategy development and investment decisions.

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