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
| Size | Recommended Starting Model |
|---|---|
| Under 500 employees | Centralized |
| 500-5,000 employees | Hybrid |
| Over 5,000 employees | Federated or Hybrid |
AI Maturity
| Stage | Description | Recommended Model |
|---|---|---|
| Exploring | Fewer than 5 AI projects, mostly experimental | Centralized (lightweight) |
| Scaling | 5-20 AI systems, some in production | Hybrid |
| Embedded | AI widely used across business units | Federated 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
| Factor | Centralized | Hybrid | Federated |
|---|---|---|---|
| Speed to stand up | Fast | Medium | Slower |
| Scales with AI adoption | Limited | Good | Best |
| Domain expertise | Limited | Good (via champions) | Best |
| Consistency | Best | Good | Requires effort |
| Overhead | Low | Medium | Higher |
Start Simple, Evolve
Most organizations find it practical to start with a centralized or lightweight hybrid model and evolve toward federation as AI adoption grows. The same charter, intake, and review artifacts work across all three models.