---
id: "concept-hub-and-spoke-ai"
type: "concept"
source_timestamps: ["§ Effect #1: The “Technology-first” Trap"]
source_url: "https://hbr.org/2025/09/dont-let-ai-reinforce-organizational-silos"
source_title: "Don't Let AI Reinforce Organizational Silos"
tags: ["ai-governance", "organizational-design", "center-of-excellence"]
related: ["action-build-hub-and-spoke", "entity-bathurst-insurance", "framework-hub-and-spoke-implementation", "question-coe-funding-model"]
definition: "An AI governance structure combining a centralized Center of Excellence (the hub) for infrastructure and standards with embedded departmental teams (the spokes) for domain-specific execution."
sources: ["tail2"]
sourceVaultSlug: "hbr-seg-tail2"
originDay: 2
articleStem: "hbr-tail-130-ai-reinforce-silos"
sourceUrl: "https://hbr.org/2025/09/dont-let-ai-reinforce-organizational-silos"
sourceTitle: "Don’t Let AI Reinforce Organizational Silos"
---
# Hub and Spoke AI Governance Model

**Definition:** An AI governance structure combining a centralized Center of Excellence (the hub) for infrastructure and standards with embedded departmental teams (the spokes) for domain-specific execution.

The Hub and Spoke model is an organizational design for AI governance that balances centralized oversight with decentralized execution.

- **The Hub** is an AI *Center of Excellence* (CoE) housing top AI experts, strategic leaders, and shared infrastructure. It provides governance, best practices, and alignment with corporate goals.
- **The Spokes** are embedded AI teams located within specific business functions. They leverage the CoE's shared resources and standards while applying deep domain knowledge to solve specific business problems quickly.

The authors' worked example is [[entity-bathurst-insurance]], which used this model to integrate sales and underwriting, building an AI model on a shared platform that pre-approved policies in real time.

This is the primary remedy for the [[concept-technology-first-trap]] and is enacted through [[action-build-hub-and-spoke]] and [[framework-hub-and-spoke-implementation]]. The article does not specify the financing mechanics — see [[question-coe-funding-model]]. Enrichment sources (Microsoft, Oracle, IBM, Moveworks) corroborate the hub-and-spoke pattern; note the counter-perspective that a fully centralized, gatekeeper-style CoE can create bottlenecks and may need to evolve toward an advisory / federated model as AI maturity grows.


## Related across articles
- [[action-establish-ai-governance]]
- [[framework-three-leadership-shifts]]