Summary
To lead AI successfully, executives need to shift their mindset. AI must be embedded directly into business units where it can drive outcomes, not isolated in a central lab. Infrastructure should be centralized only to support execution, not to control it. Scaling AI doesn’t require massive budgets, it requires clarity, discipline, and a repeatable model. The most effective path starts with one high-impact use case, delivered by a cross-functional team that owns the problem and the solution. From there, the Embedded AI Operating Model (Embed, Enable, Scale) becomes the blueprint for enterprise-wide adoption.
AI is not a department. It’s not a lab. It’s not a side project. It’s a capability that belongs inside the business, not outside it. Companies that treat AI as a technical experiment are missing the point. The ones that win embed it directly into the operations that drive revenue, margin, and customer experience.
Most organizations start with the wrong structure. They centralize AI talent in innovation centers or data science teams and expect results to scale. That model fails because it disconnects AI from the people who understand the business. Sales leaders know what drives conversion. Supply chain managers know where the bottlenecks are. Finance teams know what moves the bottom line. AI needs to be embedded in those teams. This is the core of a modern enterprise AI strategy. It’s built on three pillars: Embed, Enable, and Scale.
Embed means placing AI talent directly inside business units. These teams operate like integrated product teams, combining AI practitioners with engineers, process owners, and change managers. They own the problem, build the solution, and stay accountable for the outcome. This structure mirrors how modern software is built. And it works. But even the best embedded teams will stall without support. That’s where Enable comes in. AI teams need infrastructure. They need development environments, compute resources, access to data, and tooling. They also need guidance on legal, compliance, procurement, and security. Without this foundation, progress slows and momentum fades.
The central AI resource hub is the answer. It’s not a command center. It’s a capability enabler. It provides development environments, server space, code libraries, and access to legal, security, and procurement support. It doesn’t own the work. It makes the work possible. This hub should also coordinate with HR to recruit, certify, and train AI talent, ensuring consistent quality across the enterprise.
Avoid building centralized AI talent pools that operate as internal consultants. When AI practitioners are loaned out to business units, accountability is diluted and domain expertise is lost. AI must be embedded, not borrowed. AI projects often get stuck in legal, security, or procurement. That’s avoidable. Bring those teams in early. Build a cross-functional support group that meets with product teams at the start, midpoint, and just before deployment. This keeps everyone aligned and clears blockers before they become problems.
The third pillar is Scale. Scaling AI across the enterprise takes discipline. Start with a single use case. Choose a problem that is painful, visible, and solvable. Deliver results. Then consolidate infrastructure. Don’t let every business unit build its own stack. That’s expensive and chaotic. Share platforms. Standardize tools. Once you reach critical mass, move toward enterprise-level infrastructure that supports broader deployment without sacrificing speed.
This approach reduces cost. It improves governance. It accelerates deployment. It also creates visibility. Leaders can see which AI initiatives are underway, how they are performing, and where resources are needed. AI is iterative. It’s messy. It will surface legal, technical, and organizational challenges. That’s normal. What matters is building a process that allows teams to ask questions, get support, and keep moving.
The companies that succeed with AI are not the ones with the largest budgets. They are the ones with the clearest enterprise AI strategy. They embed AI where it matters. They support it with the right infrastructure. They scale it with discipline.
Consider a global logistics firm that embedded AI into its routing operations. The team used machine learning to predict delays and reroute shipments in real time. According to McKinsey, predictive logistics can reduce delivery times by up to 12 percent and cut fuel costs by 9 percent when implemented at scale. A retail chain used AI to optimize staffing across hundreds of stores. The model predicted foot traffic based on weather, promotions, and local events. A Deloitte report found that AI-driven workforce optimization can reduce labor costs by 15 percent while improving customer satisfaction scores by more than 10 percent.
These are not moonshots. They are targeted, well-executed use cases. And they all started with the same playbook. Embed talent. Support it. Scale infrastructure. Stay close to the business.
AI will not replace humans, but those who use AI will replace those who don’t.
Ginni Rometty, Former IBM Chief Executive Officer