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Leadership1 publisher3 min readPublished

An eight-to-14-person team is the fix one utility AI vendor prescribes for stalled pilots

Abhay Gupta of Bidgely cites Gartner and MIT figures to argue that fragmented data and ownership, not algorithms, keep utility AI stuck in pilots. His staffing math is more precise than the evidence that it works.

The Board Room · Leadership desk

Illustration accompanying An eight-to-14-person team is the fix one utility AI vendor prescribes for stalled pilots

What happened

  • Abhay Gupta, cofounder and CEO of utility analytics firm Bidgely, argues in Forbes Councils that data center and electrification demand is pushing utility C-suites to treat AI as a top strategic priority.
  • He also cites MIT's NANDA Initiative putting generative AI pilot failure at up to 95%, which he attributes to decentralized decision-making and fragmented grid data.
  • His suggested center-of-excellence roster is a director, a data governance specialist, and two to four each of AI architects and engineers, grid subject-matter experts and workforce liaisons.

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Why it matters

  • decision A floor of eight permanent seats puts the funding call above any single business unit, which turns the CoE into a C-suite budget line that has to survive a rate cycle rather than an IT project that can be quietly parked.
  • exposure Utilities that let an integrator architect the CoE without a written handover date are exposed on intellectual property, and that leverage is fixed in the contract rather than recovered at renewal.
  • contradiction The diagnosis blames decentralized decision-making while the staffing advice warns that a large central team creates bureaucratic drag, so a buyer following both has no stated threshold to aim at.
  • precedent If day-one IP ownership and wrapper-free integration become standard RFP language in utility procurement, consulting engagements get repriced around fixed transfer dates instead of open-ended retainers.

Add the roster up and it comes to eight people at the floor and 14 at the ceiling [12][13]. That is a standing function rather than a project, and two of the eight minimum seats, the director and the data governance specialist, exist to coordinate and audit rather than to build [12]. A utility funding the floor is buying supervision before it buys capacity, which is defensible if the diagnosis is right and expensive if it is not.

The two failure figures in Gupta's case count different things. The Gartner research he cites concerns enterprise projects that data readiness issues stall or kill before commercial deployment, more than 60% of them [5]. The MIT NANDA figure, up to 95%, concerns generative AI pilots that fail to deliver measurable impact [6]. Those are 35 percentage points apart and describe different failures [19]: a pilot that never ships is not the same problem as one that ships and underdelivers. Gupta presents the MIT number as showing something similar to the Gartner one [6]. A center of excellence built to unblock data pipelines answers the first failure; one built to choose better use cases answers the second.

The strongest support in this record for reading the problem as organizational is the BCG split Gupta quotes: 70% of an AI transformation's value from workforce change, talent and process redesign, 20% from technology infrastructure, 10% from the algorithms [16]. That assigns seven times as much value to people and process as to the models [17]. It also arrives secondhand in a post by a vendor CEO [1], with no method attached, so it carries the weight of a plausible prior rather than a measurement.

On the evidence supplied, a center of excellence reads as a reorganization sold as a remedy: nothing here compares deployment rates at utilities that have a CoE against those that do not [20]. What the piece does supply that a buyer can use this quarter is a procurement test. It asks what platform IP and operational models the internal team owns outright on day one, whether the platform integrates with the existing cloud data environment without proprietary wrappers or custom connectors, and how raw meter data becomes measured workflows for grid planners, field technicians and customer service staff [15].

Those questions are not neutral. Gupta's company sells AI energy analytics to utilities [1], and his test is easier to pass for a platform supplier than for an integrator whose business model favors continuous engagement, which is the risk he attributes to CoE builds handed to firms such as Accenture, Deloitte, EY and Wipro [9][10]. The provenance does not make the questions wrong. A utility that cannot name what it owns on day one, or point to a 12-month schedule for taking over model governance, has learned something about its own position regardless of who drafted the question [15].

The tradeoff Gupta names is size, and he leaves it unresolved. Decentralized decision-making is the diagnosis he borrows from MIT [6], centralization is the cure [8], and he warns that too many members slow centralized decisions and create the bureaucratic drag the CoE was meant to remove [14]. Somewhere between eight and 14 seats, range stops buying speed [13][14], and this record does not say where. Utilities standing a CoE up this quarter will locate that point by watching which decisions stop moving, and the contract terms they sign now determine whether they can still change vendors when they find it [15].

What to watch

  • Whether Gartner or MIT publish utility-specific figures that separate pilots which never reached deployment from those that deployed and underdelivered.
  • Whether utility RFPs begin requiring day-one IP ownership and a dated schedule for internal takeover of model governance.
  • Whether the large integrators respond by restructuring CoE engagements around fixed handover milestones rather than continuing scope.
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