Skip to content
Framework · Decisions and governance

Scale, Hold, Redesign, Stop: Decision Rules for AI Investment

A practical set of decision rules for a CFO or CIO reviewing AI workflows, combining return on scarce capacity with the evidence level behind each claim.

3 min read
decision rulesportfolioevidencegovernance

Key takeaways

  • Every material AI workflow should end each review in one of four decisions: scale, hold, redesign or stop.
  • Two tests decide it: return on the scarce capacity the workflow uses, and how strong the evidence is.
  • The proof thresholds below are a proposed default. Organisations should set their own, and the materiality threshold is theirs to define.

The two tests

Return on scarce capacity is expected net value divided by the load on the binding constraint: review hours, change slots, risk capacity, compute or executive attention. It ranks work. It does not state a value.

Evidence level is how strongly the value is known, from E0 (anecdote) to E4 (controlled and independently validated). See The AI Abundance Paradox.

The four decisions

DecisionWhenWhat happens
ScaleHigh value, low load, and evidence at or above the level the commitment needsFund and extend. Keep measuring.
HoldPromising but the evidence is below the level the commitment needsKeep running at the current size. Name the evidence that would change the decision, and a date.
RedesignHigh value, high loadRelieve the constraint first: automate checks, cut the load, change the workflow. Then decide again.
StopLow value, high load, or evidence that does not hold upEnd it and release the capacity. Record why.
A grid of value against bottleneck load giving scale, redesign, opportunistic and stop, with hold when evidence is too weak
Interpretation. Decision rules proposed by AI Economics Hub, version 1.0.
A grid of value against bottleneck load giving scale, redesign, opportunistic and stop, with hold when evidence is too weak

Interpretation. Decision rules proposed by AI Economics Hub, version 1.0.

Low value, low load work is opportunistic. Let teams run it inside light guardrails and review it on a calendar.

Matching proof to money

The default below is this publication's proposed pairing. A stricter or lighter version suits organisations with a different risk appetite.

CommitmentProposed defaultStricterLighter
Small and reversible, under a materiality thresholdE0 or E1, with a cap, an owner and a review dateE1E0
Material, recoverableE2E3E1
Large, hard to reverse or high riskE3, with E4 for the highest-value claimsE4E2

Whatever is chosen, the rule that no monetised claim sits below E2 should hold.

Stop is a result, not a failure

Good governance does not only authorise investment. It moves resources away from weak investments. For every material initiative, ask what would cause it to stop. Write the stop rule before the money is spent, and name the owner who can invoke it.

A one-page version

For each workflow on one page: what it costs, what scarce capacity it uses, the outcome that should change, the evidence level and what it would take to raise it, the decision (scale, hold, redesign or stop), the owner and the review date.

Status: Proposal, version 0.5. Thresholds are a proposed default.

By Ed Epstein, who works at IBM. The postings on this site are my own and don't necessarily represent IBM's positions, strategies or opinions. About and disclosure · Methodology