Many organizations are now considering how to harness the potential of AI to drive business transformation and improve operational efficiency. A strategic approach to implementing artificial intelligence (AI) can help companies move from exploratory discussions to impactful solutions.  One promising approach lies in automated decision-making, where companies use AI to drive business value creation. Implementing an automated decision-making application starts with identifying specific business workflows or use cases, identifying upstream dependencies and decomposing decisions down to their atomic level. This initial analysis serves as the scaffolding to identify where appropriate AI, machine learning, statistical or automation technologies can be used.  Workflows involving high-volume decisions or unstructured data such as contracts, invoices, memos, monthly statements, repair notes or legacy operational reports are ideal candidates for automation. Companies often apply these solutions to workflows like reconciliation processes, audits, compliance reviews, revenue recognition and fraud screening/integrity validation. Starting with AI in automated decision-making often involves the following considerations: Process identification: Determining which specific processes or functions are suitable for automation. Business value and impact: Defining ways to evaluate and measure the solution to ensure it delivers clear benefits. Team composition: Selecting the right team to ensure successful implementation. Technical feasibility: Ensuring the solution meets technical requirements, including data security and integration. Data readiness/data governance: Confirming that sufficient, accurate and reliable data is available. Data management: Identifying opportunities to centralize data. To maximize the value of your AI solution, prioritize these four key elements:  1. Team composition  Assembling a cross-functional team is key for a successful AI project. The team needs an executive sponsor to lead the initiative, define its goals and allocate necessary resources. The team should also include individuals who have the “know how,” which is the knowledge and skills to describe both a broad understanding of the process and deep knowledge of specific decisions.  These individuals also need to be able to explain quality standards and the evaluation mechanisms. This might include a manager who can outline the overall workflow, as well as subject matter experts who understand the finer details of specific functional areas.  Additionally, technical individuals fluent in system design, AI and machine learning, source system data sources and change management are essential. By bringing together individuals with diverse skills and knowledge, the team will be well-prepared to deliver an effective AI solution. 2. Decision management  Decision management is a framework that, when used properly, significantly increases the likelihood of achieving tangible business outcomes with AI. In fact, if Benjamin Franklin were alive today, he might have said, "An ounce of decision management is worth a hundred pounds of cure."  Decision management is a methodology that, when used correctly, significantly increases the likelihood of your AI solution delivering tangible business value.  For those interested in exploring this topic further, James Taylor’s Digital Decisioning: Using Decision Management to Deliver Business Impact from AI [1] offers deeper insights.  Decision management methodology  The first step in using decision management involves collaboratively mapping out the current or ideal logical process flow. This should be done with input from business users who understand the end-to-end workflow, as well as team members familiar with specific steps.  From here, the team should iteratively review the initial logical flow and decompose each decision to its atomic level. This step requires time and care to uncover 'hidden' decisions embedded within the process but not immediately visible. Identifying decisions at the atomic level is essential for ensuring explainability, transparency and measuring data bias. Next, the team should identify internal and external information sources. These will likely include structured and unstructured data, along with any upstream analytical insights that inform decision-making. It is helpful to involve individuals who can explain the decision-making process and its evaluation from a non-technical, business perspective to ensure a complete understanding. For each decision, consider factors such as frequency, volume and the required time horizon once all data is available. Define valid responses, acceptable response ranges and the characteristics of a "good" response. This assessment should also assess the value of both "good" and "bad" decisions, along with the time to value (TTV) –the duration it takes to realize the decision’s value. Short TTV decisions allow for quicker feedback, whereas longer TTV decisions often take weeks or even months to evaluate. The outputs of decision management include a diagram map and a decision inventory document. The diagram map visually breaks down all decisions made in the process, highlighting dependencies such as information sources, know-how and upstream analytics. Meanwhile, the decision inventory lists each decision’s frequency, key performance indicator (KPI), volume, time horizon and acceptable responses. 3. Data management  During exploratory data assessments, it's common to encounter gaps and limitations in both internal and external datasets. Nearly all organizations face similar challenges, the key is to devise strategies to address these gaps.  Many business leaders may not be aware of the role of AI and machine learning can play a significant role in bridging these gaps by standardizing, imputing, inferring, and classifying data to enhance data quality for subsequent AI initiatives. As a recent Gartner presentation [2] suggests, "Not having AI-ready data is no longer a 'showstopper.'" AI and machine learning should be an integral part of preparing data for AI initiatives. Data management for AI ready data  Implementing automated decision-making applications requires establishing shared data stores to organize and secure data with proper security classifications and access controls. These shared data stores will help safeguard sensitive information while facilitating authorized data access. Ongoing monitoring for data drift and data bias is essential to ensure the fairness and reliability of the AI solution. Tracking changes in the statistical properties of input data and responses over time ensures that applications are accurate and reliable. 4. Organizational readiness Integrating organizational change management (OCM) is essential for successfully adopting and embedding AI solutions. Identifying training gaps and upskilling opportunities is a crucial step to maximize ROI. Without adequate preparation, new technologies fail to deliver expected results because the workforce may default to familiar methods, limiting the impact of new tools. Providing the necessary training and support empowers the team to fully leverage the technology and tools effectively, driving meaningful and lasting transformation. The next crucial step is ensuring that OCM proactively addresses organizational readiness and engages stakeholders to ensure a smooth transition to the new AI solution. This includes assessing readiness for change, resource capacity, developing communication and mitigating potential risks and barriers to utilization and adoption.  Early understanding of people-related impacts resulting from processes and technology decisions will enable the organization to properly prepare users for the changes ahead, building the commitment and desire needed to maximize the benefits of AI and minimize resistance, ultimately driving business value and long-term success.  Reaching the go-live stage is just one component of the journey. Beyond supporting the transition to an automated decision-making application, organizational readiness can further work to instill ownership and accountability for the successful sustainment of the transformation. By beginning with the end in mind, leaders can build a culture where people are enabled to support the organization’s goals and drive growth through the application of AI within its business systems and operating models.  How we can help Our approach focuses on identifying high impact use cases and aligning AI initiatives with your strategic goals. By focusing on actual business decision-making, we can help your organization streamline processes, enhance accuracy and accelerate realizing business value from AI. Ready to take the next step? Contact us today to schedule an AI discovery workshop or an AI readiness assessment. 
Sources
[1] Digital Decisioning: Using Decision Management to Deliver Business Impact from AI, Amazon
[2] Your Organization Is Ready for AI, But Is Your Data?, Gartner

Learn how to maximize the value of your AI solution by using this organizational readiness framework.

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Digital Solutions

Data Solutions

Organizational Readiness

How to deliver business value from AI

Transformative organizations that are looking to benefit from the billions of dollars offered by the Grid Resilience and Innovation Partnerships (GRIP) program have one final opportunity to cash in.  The GRIP program is a bold initiative by the U.S. Department of Energy (DOE) aimed at strengthening and modernizing the nation’s power grid against the increasing threats of climate change and extreme weather events.   By investing in innovative technologies and strategies, GRIP funding supports the development of next-generation solutions to enhance grid resilience, reliability and efficiency. With an eye toward a cleaner, more sustainable energy future, the program seeks to equip communities with the tools they need to adapt to an evolving energy landscape.   Understanding the basics of GRIP  GRIP funding presents a significant opportunity for utilities and other organizations that are looking to improve or expand their infrastructure, particularly in the face of looming climate and weather threats.  GRIP has already launched two successful funding rounds, providing $7.6 billion to innovative projects aimed at enhancing grid resilience. Previous rounds have supported a diverse range of initiatives, from advanced grid technologies to new methods of addressing climate-driven disruptions.   Looking ahead, the third and final funding round – featuring an anticipated $2.9 billion in available grants – is focused on scaling these innovations and expanding efforts to integrate renewable energy sources, further boosting the grid's ability to withstand future challenges.  The round three notice of funding announcement is expected to take place this spring, but organizations should begin the planning and scoping process today. Because once the funding announcement occurs, organizations typically only have about two months to create and submit a concept paper – essentially a project summary that allows the DOE to either encourage or discourage the application.   At that point, the full application deadline won’t be far behind (3 months). So, in short, the timing is tight, and the process is competitive. You need to have a well-planned project in the works before you even begin the grant application process, if you have any hopes of securing the funding dollars you need.  Digging deeper into the three GRIP topic areas  The GRIP program views applications through three distinct topic areas. It is important to understand the nuances of each one, as well as the breakdown of available funding out of the original $10.5 billion grant allocation.  Grid Resilience Grants (Topic Area 1)  Essentials: There was a total of $2.5 billion in funding allocated to this topic area split across the three funding rounds. The focus of Topic Area 1 is to modernize and strengthen the grid and reduce the likelihood and potential damage of severe weather. While wildfires, hurricanes, and other catastrophic weather events can obviously have a major impact on the grid, these events can be mitigated by certain technological and infrastructural changes. There is also a 100% cost share requirement for Topic Area 1 meaning the applicant must match the full amount of the federal grant with their own funds, covering the entire project cost.  Eligibility: Topic Area 1 applies to utilities, generally speaking. More specifically, eligible applicants include domestic entities that are:  Electric grid operators  Electricity storage operators  Electricity generators  Transmission owners or operators  Distribution providers or fuel suppliers  Examples: Previously awarded projects under Topic Area 1 include:  Sectionalization and circuit improvements to mitigate outage impacts  Line hardening  Pole replacements  Microgrids  Transmission line rebuilds  Enhanced vegetation management distribution automation systems  Wildfire prevention devices  Advanced weather monitoring systems  Smart Grid Grants (Topic Area 2)  Essentials: This topic area is about increasing the flexibility, efficiency, reliability, and resilience of the grid with a particular focus on increasing the capacity of the transmission system, reducing queue-related delays and accelerating the clean energy buildout and integration of renewable energy onto the grid. In short, it's about building a more distributed energy system that draws from a diverse mix of renewable energy sources, moving away from the traditional, centralized approach that has long depended on fossil fuels to meet power demands. In this topic area, $3 billion in total funding was allocated across all three funding rounds, with a 50% cost share – notably different than the 100% cost share for Topic Area 1.  Eligibility: All entities that are eligible for Topic Area 1 are also eligible for Topic Area 2, in addition to:  Institutions of higher education  For-profit entities (including many investor-owned utilities)   Not-for-profit entities  State and local government entities  Tribal nations  Examples: Previously awarded projects under Topic Area 2 include:  High voltage direct current (HVDC) terminal expansion  Fault location isolation and system restoration (FLISR)  AI-enabled grid edge analytics  Distributed energy resource management systems (DERMS)  Dynamic line rating and many other grid-enhancing technologies (GETs)  Grid Innovation Program (Topic Area 3)  Essentials: There was a total of $5 billion in funding available for Topic Area 3 across the three funding rounds with a fairly broad definition of eligible projects. Projects that combine priorities from Topic Areas 1 and 2 (along with a more innovative twist) may be under consideration for Topic Area 3. At a high level, though, Topic Area 3 encourages high-impact innovative projects that improve grid reliability and resilience of the local, regional, or interregional grid. Applications may include technical or non-technical approaches that address the transmission system, the distribution system, storage or a combination of both. There is a 50% cost share for Topic Area 3.  Eligibility: For-profit entities are not eligible under Topic Area 3 and the DOE particularly seeks projects that include Independent System Operators (ISO), Regional Transmission Organizations (RTO), and/or Power Pools under this topic area. Eligible entities for Topic Area 3 include:  States, or a combination of two or more states  Tribal nations  Unit of local government  Public utility commission   Examples: Previously awarded projects under Topic Area 3 include:  Innovative rate making techniques  Innovative technologies for renewable dispatch  Reliable island grid operation  Implementation of advanced transmission technology   What steps should you take?  While the first round of funding was disclosed in November 2022 and the second round was announced in November 2023, the third round is not anticipated until the spring of 2025.  With that in mind, any organization potentially interested in funding should begin the process by visiting the following websites:  The GRID Deployment Office (GDO) website: Sign up for their newsletter to ensure you don’t miss any announcements about the timing and substance of the next round of funding.  The GRID website: Gain a deeper understanding for previously awarded projects, much like those shared above. You can also begin to scope your project now so that you are ready to start the application process as soon as the funding round is announced.  The Infrastructure eXCHANGE website: All of the application material from previous rounds are housed here, including the funding opportunity announcement. It is anticipated that this will be the application portal for round three. Sign up for an account now.  There is urgency to begin this process because, as noted before, the timeline will move quickly. The race for billions of dollars is, as you would expect, highly competitive. And the process itself is complex, time-consuming and labor-intensive. The DOE wants to see comprehensive, well-developed applications, so it’s critical for your organization to begin thinking about factors like scope, budget and messaging.  Baker Tilly works closely with the DOE and understands how to tailor GRIP applications to their expectations. We guide organizations through every step of the federal funding application process, as well as the compliance process, addressing issues proactively and answering any questions along the way.  To discuss how our specialists can assist with your GRIP application process or address any questions you have, contact us today. 

The GRIP program is anticipated to offer $2.9 billion in final funding for grid resilience, smart grids and innovation. Start planning now for the competitive GRIP funding application process.

GRIP Program Solutions

Inflation Reduction Act Tax Credit Solutions

A final chance to access billions in DOE’s GRIP funding

The Clean Communities Investment Accelerator (CCIA) program, one of three financing programs under the Greenhouse Gas Reduction Fund, seeks to increase the clean energy financing capacity of community lenders working in low-income and disadvantaged communities to deploy clean energy projects. What is zero-emissions transportation?   The CCIA Zero-Emissions Transportation initiative supports projects, activities, and technologies that deploy zero-emissions transportation modes or supporting infrastructure in disadvantaged communities. Zero-emissions transportation refers to eliminating or offsetting emissions from all modes of transportation so that the total carbon emissions equal the amount removed from the atmosphere. Investments in zero-emissions transportation modes listed in the U.S. National Blueprint for Transportation Decarbonization may be eligible for low-cost capital and technical assistance. What projects qualify?  All qualifying projects must meet the criteria listed below and must be in a low-income and disadvantaged community. The project must reduce or avoid greenhouse gas (GHG) emissions or other air pollutants. The project, activity, or technology may reduce or avoid such emissions through its own performance or by assisting communities in their efforts to deploy projects, activities or technologies that reduce or avoid such emissions. The project must deliver additional benefits to communities within clean transportation such as job creation. The project must not have otherwise been financed, mobilize private capital and support commercial technologies. Example project types A variety of projects can qualify. Example project types include: Zero-emissions light-duty vehicles
- Battery electric vehicles (EVs) (not including plug-in hybrids or hybrid EVs)
- Fuel cell EVs Zero-emissions medium and heavy-duty trucks and buses Fleet electrification projects Electric vehicle chargers Zero-emissions fueling stations
- Chargers and/or other infrastructure to support zero-emissions micromobility options (e.g., electric bikes and scooters)
- Chargers and/or other infrastructure to support zero-emissions light-duty vehicles for individuals and families or medium and heavy-duty vehicles for businesses and/or farm
- Charging and/or refueling depots for zero-emissions school buses, trucks or public transportation vehicles Enabling infrastructure for zero-emissions transportation to improve walkability or bikeability Small-scale infrastructure to improve walkability and bikeability What is a low-income and disadvantaged community?  Low-income and disadvantaged communities are defined as:  Located in a census tract identified as disadvantaged by the CEJST mapping tool or EJ screen mapping tool, Geographically dispersed low-income households with incomes below 80% of the area median income (AMI) or 200% of federal poverty level, or Properties providing affordable housing (either federal affordable housing properties or buildings serving a majority of households with income less than 80% AMI).
Start here Achieving zero-emissions transportation in disadvantaged communities is a crucial step towards a sustainable future. By leveraging CCIA funding for Zero-Emissions Transportation projects, you can access the necessary resources and support to make impactful changes. Contact a CCIA specialist today to discover how your project can qualify for low-cost capital and technical assistance. Let’s work together to create cleaner, healthier communities.

The CCIA Zero-Emissions Transportation initiative supports sustainable transportation projects in disadvantaged communities. Learn more about qualifying projects. 

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What is zero-emissions transportation?

The Financial Crimes Enforcement Network (FinCEN) issued a pivotal final rule aimed at fortifying the investment adviser sector against illicit finance activities. This rule, which integrates certain registered investment advisers (RIAs) and exempt reporting advisers (ERAs) into the definition of “financial institution” under the Bank Secrecy Act (BSA), marks a significant shift in regulatory expectations. The final rule is effective on January 1, 2026. As a critical player in the financial services industry, it’s crucial to understand the implications of this rule for investment advisers and their compliance obligations and ensure your program is established and running ahead of the deadline. Understanding the scope and impact  The final rule mandates that RIAs and ERAs establish a robust anti-money laundering (AML) and countering the financing of terrorism (CFT) program. This requirement is a direct response to the documented risks highlighted in the U.S. Department of the Treasury’s February 2024 risk assessment, which identified numerous instances where criminals, corrupt officials, and foreign adversaries exploited the investment adviser industry to launder funds and access sensitive technologies.   The inclusion of investment advisers under the BSA’s regulatory framework is designed to close significant gaps in the financial system. By requiring these advisers to implement AML/CFT programs and report suspicious activities, FinCEN aims to mitigate the risks posed by illicit finance activities. This move aligns with the broader objectives of the Biden-Harris Administration’s 2021 U.S. Strategy on Countering Corruption.   Key elements of the final rule – What RIAs and ERAs need to know
Implications for investment advisers  For investment advisers, the new rule necessitates a comprehensive review and enhancement of existing compliance frameworks. Here are some key steps advisers should consider: 
The FinCEN final rule represents a significant step forward in preventing financial institutions from being used as tools for money laundering, terrorism financing and other financial crimes. Building a robust compliance program that not only meets regulatory requirements but can protect your business, clients, and the integrity of the financial system. Baker Tilly can help you gain compliance, whether you have existing procedures in place or need to start from scratch. With our flexible managed services approach, we can work with you to build a risk-based program that meets compliance expectations now and ensure flexibility to evolve with you. Reach out to our financial crimes specialists to discuss how the FinCEN final rule may affect your organization. 

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Navigating the new FinCEN final rule for investment advisors

In today’s digital world, cybersecurity is a critical business imperative, not just an IT concern. With evolving cyber threats like ransomware and data breaches, organizations must adopt a proactive approach to protect their systems and data. The interconnected technology ecosystem, while beneficial, also poses risks, as issues can escalate quickly into disasters. Modern cybersecurity requires new thinking, considering new threats, questions, steps to mitigate risks and increase cyber resilience.  Organizations are now deeply investigating their operations and vendors as part of their enterprise risk management (ERM) programs. The focus has shifted from preventing cyberattacks to being resilient when they occur. There is no one-size-fits-all solution for cybersecurity, it requires tailored investments in people, processes and technology.  The July 2024 CrowdStrike outage, causing billions in losses and operational delays, highlighted the need for robust risk management. This incident, along with past events like the SolarWinds attack in 2020 and the Colonial Pipeline attack in 2021, underscores the importance of cyber resilience.  These incidents show that both malicious attacks and simple errors can cause significant disruptions. Therefore, being prepared for cyber incidents is crucial. While preparation can be time-consuming and costly, investing in cyber resilience today can save organizations from future disasters. Proactive cybersecurity investments are essential for long-term protection and stability.  Baker Tilly’s cyber resilience guide provides you with:  Leading cybersecurity practices  Incident response planning  Recording planning  Continuity planning  Training and awareness  Simulations, run-throughs and tests  Considerations for third- and fourth-party vendors risk management  A checklist of questions organizations should be asking, related to people, process and technology, and vendor risk. 
For further discussion on cyber resilience connect with a Baker Tilly cybersecurity specialist. Asking the right questions about people, processes, technology, and vendors is essential. Our cyber resilience guide further elaborates on leading cybersecurity practices and a checklist of questions to strengthen your cyber resilience. 

Discover essential cybersecurity practices and critical questions to enhance your cyber resilience in Baker Tilly’s cyber resilience guide. 

Cybersecurity Risk Assessments

Cybersecurity

Cyber resilience: A guide to navigating modern risks

Organizations of all sizes and in all industries are targets of ransomware attacks — and the number is skyrocketing.  In recent years, ransomware attacks have proved themselves to be malicious well-oiled machines that use ransom as a source of revenue, leaving organizations scrambling to defend their digital assets. Ransomware attacks can not only cause significant direct and indirect costs to the organization, but they also degrade productivity and can cause irreparable reputational damage.   Let’s explore how ransomware has evolved:  The business mindset Ransomware attacks no longer hide in the shadows. They have adopted a business mindset, treating their illicit activities as a revenue stream. Ransomware attackers invest in research, development and customer support, ensuring that they strive for maximum returns. Ransom payments, often demanded in cryptocurrencies, fuel the attackers' operations.  The multiphase approach 
By implementing proactive controls, organizations can minimize the chance of falling victim to a ransomware attack. Our guide explores the following leading cybersecurity practices, with critical steps to take and tips to incorporate into your approach:  Know your environment  Keep your data backups safe  Implement a patch management program  Build a security-aware culture  Assess control and authentication  Monitor, detect and respond  Implement a ransomware recovery strategy  Consider ransomware insurance 

Our ransomware prevention guide explores eight leading cybersecurity practices to minimize an organization’s chance of a ransomware attack. 

How to deliver business value from AI

A final chance to access billions in DOE’s GRIP funding

What is zero-emissions transportation?

Navigating the new FinCEN final rule for investment advisors

Cyber resilience: A guide to navigating modern risks

Ransomware prevention guide

How to deliver business value from AI