AI Councils
Operating Models

Choosing Your Model

A decision framework to help you select the right AI governance structure.

Decision Framework

Use the following factors to guide your choice of operating model.

Organization Size

SizeRecommended Starting Model
Under 500 employeesCentralized
500–5,000 employeesHybrid
Over 5,000 employeesFederated or Hybrid

AI Maturity

StageDescriptionRecommended Model
ExploringFewer than 5 AI projects, mostly experimentalCentralized (lightweight)
Scaling5–20 AI systems, some in productionHybrid
EmbeddedAI widely used across business unitsFederated with central policy

Regulatory Pressure

If your organization operates in a heavily regulated sector (healthcare, finance, government) or under the EU AI Act's high-risk obligations, you will likely need more structured governance earlier. Lean toward hybrid or federated models with formal records.

Decision Matrix

FactorCentralizedHybridFederated
Speed to stand upFastMediumSlower
Scales with AI adoptionLimitedGoodBest
Domain expertiseLimitedGood (via champions)Best
ConsistencyBestGoodRequires effort
OverheadLowMediumHigher

Start Simple, Evolve

Most organizations should start with a centralized or lightweight hybrid model and evolve toward federation as AI adoption grows. The toolkit is designed to support this evolution. The same charter, intake, and review artifacts work across all three models.

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