Building an AI CoE: Why You Need One and How to Make It Work
CIO, Thursday, May 14th, 2026
Organizations should establish AI Centers of Excellence to scale AI initiatives, standardize practices, and convert AI pilots into measurable business value.
Most companies struggle with AI adoption beyond pilot projects, with only one-third advancing past the pilot stage despite 90% using AI in at least one business function. A Center of Excellence (CoE) is a centralized team that standardizes best practices, ensures consistent governance, and helps translate AI prototypes into repeatable solutions aligned with business strategy.
Effective CoEs enable cross-functional collaboration, reduce duplicated efforts, and deliver significant returns organizations see an average ROI of $3.7 for every dollar spent on generative AI. To build a successful AI CoE, organizations should establish executive sponsorship, create a diverse team including data scientists and business leaders, define clear operating models, and foster a culture of innovation and responsible AI practices.