AI Strategy and Portfolio Management Framework

This document is a guide that outlines a framework for managing an AI project portfolio within enterprises that may not have extensive budgets for AI adoption. It emphasizes the importance of understanding the uncertainty associated with market and technology when making investment decisions in AI. The guide categorizes AI projects into core, platform, and option investments, detailing how each type contributes differently to value creation. It discusses the significance of managing AI projects strategically, suggesting that organizations should assess their existing AI initiatives and align them with overall business objectives. The document also highlights the need for a structured approach to evaluate the potential return on investment for various AI projects, advocating for a scorecard method to assess market and technical uncertainties. By doing so, organizations can better navigate the complexities of AI investments and ensure they are making informed decisions that align with their strategic goals.