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Leadership1 publisher3 min readPublished

Three executives gave three answers when a buyer asked who owned the pricing model

Jay Hawkinson, writing for the Forbes Tech Council, says his pre-deal AI governance reviews keep turning up models with no named decision owner, and he puts figures on what changed once companies assigned one.

The Board Room · Leadership desk

Illustration accompanying Three executives gave three answers when a buyer asked who owned the pricing model

What happened

  • Hawkinson, who runs AI governance reviews ahead of transactions, describes a manufacturer whose pricing engine issued daily recommendations the sales team acted on, with no legal review and no board awareness.
  • A buyer's diligence question about who owned those pricing decisions drew three answers: the model made them, the vice president approved them, and pricing is a sales function.
  • Governance frameworks satisfy an auditor's first request for evidence, he writes, while rarely naming an accountable person, recording who has used override rights, or holding an inventory the board has seen.
  • He sets three conditions for ownership: a named owner for every material AI-influenced decision, an escalation path that has been tested, and reconstructability.
  • At a $5 billion industrial manufacturer, he says models reached production in 16 weeks because named owners, override protocols and board reporting cadence were settled before the build.

Compiled by The Board RoomSomething wrong?How this is made

Why it matters

  • exposure The seller carries this one. A gap that internal teams route around for years turns into a diligence finding at the moment an outside party asks, when there is no time left to build the record.
  • decision Hawkinson's ownership test points away from the builders and toward an executive who did not commission the model, so somebody in the operating line has to accept accountability for what its output causes.
  • constraint With no owner assigned in advance, halting a model already in production starts as an argument about authority, and the examination of the data waits behind it.
  • capability Assigning a person to a contested number converts a standing disagreement between two functions into a decision someone is entitled to make.

The reason the pattern holds is that every answer in that room is true from where the person sits, and no document contradicts any of them. Hawkinson wrote that ambiguity about who owns a decision is survivable internally, because people route around it, and that under outside scrutiny it becomes a finding, and by then it cannot be fixed [8]. What failed in the cases he reviewed was the authority structure around the models, and nobody could answer a question from outside the company on a deadline [7].

His test for who the accountable person is rules out the two candidates a governance document usually lists. "Not the system owner or the team that built the model, but the executive accountable for what the output causes," he wrote [14].

The figures he offers for what naming an owner changes come from companies he does not name. At a $2.5 billion global manufacturer, CRM adoption sat at 6% for years. The standard explanation was that people needed more training. Employees knew how to use the system and did not want to, and sales managers did not enforce it because no one could explain why it mattered [15]. Adoption reached 89% after named owners by region, documented decision rights over the forecast and a platform those owners could run themselves, once the forecast leadership relied on had to originate in that system [16]. That is a gain of 83 percentage points [21].

The same absence showed up as a metric dispute at a private-equity-backed global manufacturer. Roughly a quarter of the data domains had no business owner, because nobody had assigned the responsibility [10]. Operations reported 94% on-time delivery on a plant calculation and commercial reported 68% on a customer calculation, a spread of 26 points, and nobody owned which number was right [11][22]. Naming an owner for that calculation ended the argument [12].

At the $5 billion industrial manufacturer, the environmental health and safety model was built to flag conditions that could lead to life-altering injuries. It produced results none of the team expected. Because accountability was already assigned, the short project comparing assumptions against the data took a phone call. Hawkinson's estimate of the alternative is a month of meetings about who was allowed to stop the model [18].

What the record does not contain is a named company or an independent count. The pricing engine is a composite. Hawkinson says he saw the same structure inside a $5 billion industrial manufacturer and a $6 billion global food company before he saw it raised in a diligence room [6]. He describes his own vantage point as building data and AI functions at companies between $1.5 billion and $6 billion, and sitting across from boards as a chief digital and AI officer [20]. The part that travels beyond his casework is the timing. He wrote that override and escalation questions read as administrative until a regulator, a litigant or a buyer asks them on a deadline [19]. In his example, the buyer asked eighteen months after the model started producing daily recommendations [4].

What to watch

  • Whether a buyer or a regulator publicly prices a missing AI decision owner into a deal or an enforcement finding.
  • Whether audit and standards practice begins asking for override logs and board-seen model inventories as evidence.
  • Whether Hawkinson or another practitioner publishes results with named companies instead of composites.
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