Enterprise AI Analysis
Human-Centered AI Maturity Model (HCAI-MM): An Organizational Design Perspective
Human-centered artificial intelligence (HCAI) is an approach to AI design, development, and deployment that prioritizes human needs, values, and experiences, ensuring that technology enhances human capabilities, well-being, and workforce empowerment. While HCAI has gained prominence in academic discourse and organizational practice, its implementation remains constrained by the absence of methodological guidance and structured frameworks. In particular, HCAI and organizational design practices are often treated separately, despite their interdependence in shaping effective socio-technical systems. This chapter addresses this gap by introducing the Human-Centered AI Maturity Model (HCAI-MM), a structured framework that enables organizations to evaluate, monitor, and advance their capacity to design and implement HCAI solutions. The model specifies stages of maturity, metrics, tools, governance mechanisms, and best practices, supported by case studies, while also incorporating an organizational design methodology that operationalizes maturity progression. Encompassing dimensions such as human-AI collaboration, explainability, fairness, and user experience, the HCAI-MM provides a roadmap for organizations to move from novice to advanced levels of maturity, aligning AI technologies with human values and organizational design principles.
Executive Impact
Key metrics and strategic advantages gained by embracing Human-Centered AI.
Maturity Levels Defined
Years STS Experience
HCAI Adopters
Deep Analysis & Enterprise Applications
Select a topic to dive deeper, then explore the specific findings from the research, rebuilt as interactive, enterprise-focused modules.
Introduction
Artificial Intelligence (AI) refers to the simulation of human intelligence processes by machines, particularly computer systems, enabling them to learn, reason, and make decisions. There are two main ways AI are being used in organizations: substituting humans through automation and augmenting humans' ability to search, comprehend problems, generate and evaluate solutions, and make choices. This chapter focuses on augmentation, the intentional collaboration of humans with smart technologies, referred to as HCAI (Xu, 2019; Shneiderman, 2020).
HCAI refers to the design, development, deployment, and use of AI systems that prioritize human needs, values, and experiences, enhancing human capabilities rather than replacing them. This is contrary to AI strategies, which decompose processes into tasks, automate as many tasks as possible, and what is left over is combined into new roles and responsibilities. HCAI emphasizes ensuring that technology serves the needs and values of people, rather than merely automating tasks. This approach emphasizes collaboration between humans and AI, ensuring that technology enhances human capabilities and decision-making while promoting transparency, fairness, and ethical considerations (Schmager, Pappas, & Vassilakopoulou, 2023). By fostering collaboration between humans and AI, this approach impacts the design of an organization by empowering individuals, decentralizing information, decision-making, creativity, and productivity through self-managing structures and processes (Snow & Fjeldstad, 2024).
HCAI Challenges
Current HCAI practices face challenges due to the absence of a comprehensive maturity model, which can hinder organizations from effectively assessing and improving their AI systems (Deloitte,2020; Hartikainen, Vaananen, Olsson, 2023; Wilkens, Langholf, Ontruo & Kluge, 2012). Additionally, organizations may struggle to identify best practices and scalable strategies for enhancing user experience, resulting in inconsistent implementation of human-centered approaches. Implementing a maturity model will enable organizations to systematically evaluate their practices, identify weaknesses, and adopt best practices, ultimately fostering enhanced transparency, user engagement, and ethical considerations in AI deployment (Sonntag, Mehmann, Mehmann, & Teuteberg, 2024).
Guiding Principles
Human-centered design principles serve as the guiding philosophy for creating user-centered solutions, while the HCAI-MM provides a framework for evaluating how well organizations integrate these principles in their AI initiatives. See Table 1 below of HCAI Guiding Principles (Xu, Gao, & Dainoff, 2024). These principles include Transparency and Explainability, Human control and empowerment, Ethical Alignment, User Experience, Human-Led Collaboration with AI, Safety and Robustness, Accountability, and Sustainability.
HCAI-STD Design Process
Entry, Sanction, Start-up
→
Research and Analysis
→
Design
→
Implementation
| Key HCAI Practices | Description | Impact |
|---|---|---|
| User Research and Engagement | Involve end-users early in the development process through interviews, surveys, usability testing, and deliberation design shops. Equip users with the knowledge and tools to understand and interact with AI systems | Ensures that AI systems are relevant and meet user needs, leading to higher adoption rates and satisfaction. User interaction with AI in deliberation design impacts new work and organization designs. |
| Iterative Design | Utilize rapid prototyping and iterative feedback loops to refine AI solutions continuously. | Enhances product quality and reduces the risk of failures by incorporating user feedback early and often. |
| Ethical Alignment | Adopt ethical guidelines that prioritize fairness, transparency, and accountability in AI systems. This involves conducting ethical assessments and considering societal implications of deploying AI systems. | Builds trust with users and stakeholders, minimizing reputational risks and aligning with regulatory requirements |
| Explainability and Transparency | Develop AI systems that can explain their decisions in understandable terms. Explain what decisions are made, what data is used, and how outcomes are achieved. | Increases user trust and reduces resistance to AI adoption, especially in sectors like healthcare and finance, where decisions have significant consequences. |
Case Study 1: Mayo Clinic - HCAI in Healthcare Operations
At Level 2 of HCAI maturity, the Mayo Clinic implemented a human-centered AI system to optimize clinical workflow scheduling and reduce clinician burnout (Verghese, Shah, & Harrington, 2023). The AI tool used natural language processing to analyze patient visit data and predict appointment durations. Rather than automating scheduling entirely, the system provided adaptive recommendations that clinical teams could review and modify. The human-centered design process included iterative feedback from physicians, nurses, and administrative staff, ensuring transparency and trust in AI outputs. This collaborative approach improved scheduling accuracy by 18% and reduced administrative burden, while preserving clinician decision authority—hallmarks of Level 2 maturity where humans remain central in AI-informed processes.
18%
Improved Scheduling Accuracy at Mayo Clinic
Case Study 2: IBM - HCAI in Talent Management
IBM's human resources organization introduced a human-centered AI platform to assist managers with talent retention and internal mobility decisions (Boudreau, & Jesuthasan, 2022). At Level 2 of the HCAI maturity model, the system provided predictive insights on employee attrition risk, complemented by explainable dashboards that allowed HR partners to question or adjust AI-driven suggestions. The organization established ethical review checkpoints and employee feedback loops to ensure fairness and interpretability. Rather than replacing human judgment, the AI augmented decision-making and fostered data-informed conversations between managers and employees. This integration represented an intermediate level of maturity—structured, explainable, and participatory—enabling IBM to align AI with human values and organizational trust.
Advanced ROI Calculator
Understand the potential return on investment (ROI) by integrating Human-Centered AI into your operations. Adjust the parameters below to see the estimated annual savings and hours reclaimed for your organization.
Estimated Annual Savings
$0
Hours Reclaimed Annually
0
HCAI Implementation Roadmap
A phased approach to integrate Human-Centered AI into your organizational strategy and operations, ensuring a smooth transition and maximum impact.
Phase 1: Readiness & Awareness (Level 1)
Complete initial readiness assessment, build awareness of HCAI principles, and establish basic ad-hoc practices. Focus on building sanction and resource preparation.
Phase 2: Developing HCAI Practices (Level 2)
Conduct user research, implement basic usability testing, and foster early collaboration. Begin adopting external HCAI design standards and documenting AI projects.
Phase 3: Formalizing HCAI Practices (Level 3)
Establish HCAI governance, publish design guidelines, launch proactive training, and conduct structured deliberations. Integrate formal processes for ethical review and user input.
Phase 4: Managing HCAI Implementation (Level 4)
Implement HCAI strategies widely across the organization, establish quantitative metrics for HCAI and ethical compliance, and institutionalize data-driven decision-making and continuous user involvement.
Phase 5: Optimizing & Leading (Level 5)
Achieve continuous improvement and innovation, embed HCAI into organizational culture and business strategy, and become a recognized leader in HCAI practices within the industry.
Ready to Transform Your Enterprise with HCAI?
Our experts are ready to guide you through implementing a Human-Centered AI strategy tailored to your unique organizational needs. Book a personalized consultation today.
Ready to Get Started?
Book Your Free Consultation.
Let's Discuss Your AI Strategy!
Lets Discuss Your Needs
Select a Date
Sun
Mon
Tue
Wed
Thu
Fri
Sat