How Organizations Design Portfolio Management to Govern AI: A Taxonomy Approach
Type
conference paper
Date Issued
2025
Author(s)
Abstract
Advances in artificial intelligence (AI) create game-changing opportunities and new risks for organizations. Increasing competition and emerging regulation pressure them to govern AI for strategic use. Portfolio management has been identified as a key mechanism. However, AI is different from technologies for which portfolio management has proven effective. How organizations design portfolio management to govern AI is not well understood. Therefore, we conceptualized key design decisions in AI portfolio management (AIPM) by developing a multi-layer taxonomy. We developed our taxonomy based on five exploratory case studies. We evaluated it through expert interviews and a practitioner intervention. Our taxonomy shows that many IT portfolio management characteristics also apply to AIPM. However, AI introduces complexities that require novel design decisions. Our taxonomy captures design knowledge that enables future causal / predictive theorizing on AIPM. Practitioners can use our taxonomy as a tool to establish and improve AIPM practices.
Keywords
Artificial Intelligence
Governance
Portfolio Management
Taxonomy
Design Science
HSG Classification
contribution to scientific community
Refereed
Yes
Pages
16
Event Title
European Conference on Information Systems (ECIS)
Event Location
Amman, Jordan
Event Date
12.06.2025
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Name
How Organizations Design Portfolio Management to Govern AI_ A Taxonomy Approach.pdf
Size
468.34 KB
Format
Adobe PDF
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