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Strategic AI Deployment in Decentralized Organizations, Balancing Central Oversight with Local Flexibility

Knol, W.J.H. (2025) Strategic AI Deployment in Decentralized Organizations, Balancing Central Oversight with Local Flexibility.

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Abstract:How can decentralized organizations successfully integrate Artificial Intelligence (AI) while balancing central oversight and local flexibility? This study addresses this challenge by examining key components and managerial practices that enable effective AI deployment in decentralized contexts. Using qualitative analysis of interviews conducted with Regional Water Management Authorities, the research identifies hybrid governance models, resource-sharing frameworks, and adaptive AI systems as essential for achieving structured flexibility. The findings reveal that cross-regional workshops, collaborative mechanisms, and continuous feedback loops empower decentralized units to align with organizational goals while addressing localized needs. This study contributes to the literature by advancing theories of hybrid governance and socio-technical systems, demonstrating how iterative feedback and collaborative strategies enhance adaptability and innovation. It also explores the application of AI maturity models across decentralized units, highlighting how organizations can navigate variations in readiness and capability. While grounded in a sector-specific context, the findings offer actionable insights for broader industries seeking to integrate AI responsibly. Future research is proposed to validate these insights across industries and through longitudinal studies. Ultimately, this thesis provides a practical framework for designing AI strategies that harmonize central oversight with regional autonomy, fostering operational efficiency and innovation.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/104862
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