EY is creating a 'value realization' office to make sure its AI spending pays off
Centralizing AI governance is critical for managing costs and ensuring the technology drives returns.EY has created an "AI Value Realization Office" to govern its AI strategy.Creating an office will be a "critical part" of clients' AI journeys as well, said Dan Diasio, EY's global consulting AI leader.AI can't be managed by any existing department, so EY is creating a new one.The Big Four firm is setting up a new function called the "AI Value Realization Office" to centralize its AI spending and ensure the technology delivers measurable impact.Dan Diasio, EY's global consulting AI leader, told Business Insider the firm expects the office to be fully operational within a couple of months.Its job is to govern AI spending, drive returns, monitor usage, decide which AI initiatives to scale, and oversee how AI reshapes jobs.Most companies allocate corporate budgets along departmental lines. However, AI spending and its potential payoff can cut across IT, finance, sales, HR, and operations, said Diasio."If you fund by department, you end up addressing a bunch of use cases inside of each of the functions.
Reported by 1 outlet — Business Insider. See all sources ↓
Centralizing AI governance is critical for managing costs and ensuring the technology drives returns.EY has created an "AI Value Realization Office" to govern its AI strategy.Creating an office will be a "critical part" of clients' AI journeys as well, said Dan Diasio, EY's global consulting AI leader.AI can't be managed by any existing department, so EY is creating a new one.The Big Four firm is setting up a new function called the "AI Value Realization Office" to centralize its AI spending and ensure the technology delivers measurable impact.Dan Diasio, EY's global consulting AI leader, told Business Insider the firm expects the office to be fully operational within a couple of months.Its job is to govern AI spending, drive returns, monitor usage, decide which AI initiatives to scale, and oversee how AI reshapes jobs.Most companies allocate corporate budgets along departmental lines. However, AI spending and its potential payoff can cut across IT, finance, sales, HR, and operations, said Diasio."If you fund by department, you end up addressing a bunch of use cases inside of each of the functions. And what that often means is that you're leaving a lot of value on the table," he said.EY-Parthenon research found that 75% of the potential enterprise value from AI comes from horizontal value streams — meaning across multiple functions — compared with 25% from projects contained within individual functions, Diasio said.The AI office will govern the value strategy, looking not just at the dollar-for-dollar calculation but at a broader assessment of whether AI initiatives are changing business performance, Diasio said.It "will help make sure that funding flows where the biggest opportunities are," he said.Creating a corporate function to manage a growing cost or risk isn't a new idea. Modern-day HR departments emerged during the Great Depression as companies sought more systematic ways to hire and fire workers, while treasury teams took shape in the 1970s, when floating exchange rates made currency movements a bigger risk for multinational companies.The AI value realization office is the modern-day equivalent, reallocating a set of responsibilities scattered across finance, technology, and other teams to a strategic function in its own right.'Client zero'The Big Four professional services pitch themselves as "client zero" for the AI future.
Read the full report at Business Insider ↗
Why it matters
A world story we're tracking; its significance and source trust firm up as more outlets confirm it.
- What's the story?
- Centralizing AI governance is critical for managing costs and ensuring the technology drives returns.EY has created an "AI Value Realization Office" to govern its AI strategy.Creating an office will be a "critical part" of clients' AI journeys as well, said Dan Diasio, EY's global consulting AI leader.AI can't be managed by any existing department, so EY is creating a new one.The Big Four firm is setting up a new function called the "AI Value Realization Office" to centralize its AI spending and ensure the technology delivers measurable impact.Dan Diasio, EY's global consulting AI leader, told Business Insider the firm expects the office to be fully operational within a couple of months.Its job is to govern AI spending, drive returns, monitor usage, decide which AI initiatives to scale, and oversee how AI reshapes jobs.Most companies allocate corporate budgets along departmental lines. However, AI spending and its potential payoff can cut across IT, finance, sales, HR, and operations, said Diasio."If you fund by department, you end up addressing a bunch of use cases inside of each of the functions.
- How widely is it covered?
- 1 outlet, average source rating 6.0/10.
- When was it last updated?
- 12m ago.
How outlets are framing the same story
Here's how each outlet is covering the story — compare their headlines and timing at a glance.
- Coverage card1 outlet1CoverageScouting report
EY is creating a 'value realization' office to make sure its AI spending pays off
Sources1TypeCoverageBusiness Insider