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Scenario 01 Construction Tech (B2B SaaS)

AI strategy and governance from zero.

Ironframe Technologies

  • RoleDirector of AI: Strategy, Governance & Execution
  • IndustryConstruction Tech (B2B SaaS)
  • ScaleSeries B, pre-Series C raise
  • Timeline6 months: assessment to production

Ironframe Technologies is a fictitious organization. This scenario is a composite drawn from patterns commonly observed in scaling B2B SaaS companies. It is included here to illustrate strategic thinking and leadership approach.

Section 01

About Ironframe Technologies

Ironframe Technologies builds cloud-based project management software for the commercial construction industry. Their platform handles bids, schedules, RFIs, submittals, and change orders across complex multi-site projects.

Founded in 2017, the company had grown to 1,200+ paying customers and was processing over 4 million construction documents annually. After closing a Series B in early 2023, board pressure was mounting for AI-powered product differentiation ahead of a Series C raise planned for 18 months out.

Executive Landscape

CEO
Former construction executive turned founder. Strong on vision, limited AI fluency.
CTO
Seasoned engineering leader. Skeptical of AI reliability in high-stakes production environments.
VP Product
Pushing hard to ship AI features. Watching a well-funded competitor, BuildSmart AI, closing the gap.
Section 02

The Situation

Ironframe had good product-market fit and a loyal customer base, but competitors had started embedding AI directly into their workflows and the gap was showing. The company had run some experiments with off-the-shelf AI tools. Adoption was poor and results were hard to measure.

The executive team was not aligned on what to do next. The CEO was ready to commit. The CTO had concerns about reliability. The VP Product wanted features on the roadmap yesterday. Nobody owned AI, and the experiments that had been run internally were sitting in three separate team folders with nothing shipped.

The question put on the table was direct: where does AI actually move the needle for Ironframe's customers, and can we build it in a way the company can stand behind?

Section 03

The Diagnosis

The first two weeks were spent in discovery: interviews across product, engineering, operations, and customer success, plus a review of what had already been attempted internally.

Five things became clear quickly.

1. Nobody owned AI. Three teams had independently prototyped features. None had shipped. There were no shared standards, no review process, and no one accountable for the outcome.

2. The customer problem was obvious, but untouched. Project managers on the platform were averaging 200+ documents per active project, RFIs, submittals, change orders, daily logs. Nobody had time to read all of it, and critical issues were getting missed as a result.

3. Governance had not been considered. There were no policies covering how AI-generated outputs would be reviewed, corrected, or audited. In construction, a missed change order can cost $500,000. For enterprise buyers, the absence of any AI governance documentation was becoming a procurement barrier.

4. The technical team needed development. The data science group was a tight team of three, capable in traditional machine learning but without hands-on experience in LLMs, RAG systems, or agentic workflows.

5. The leadership team was pointed in different directions. The CEO wanted something in the next release. The CTO wanted to build something reliable. The VP Product wanted speed. Without reconciling those three positions, nothing would ship.

Section 04

The Strategic Response

Setting the AI Vision

The first move was reframing how the company talked about AI internally. Rather than treating it as a features project, AI was positioned as the product's intelligence layer: the thing that would make every user on the platform faster and better at their job. The organizing idea was simple. Ironframe should not just store construction data. It should make sense of it.

Three investment priorities were set, ordered by how quickly they could deliver customer value:

PriorityCapabilityRationale
1Document Intelligence and SummarizationHighest customer pain, shortest path to value
2Agentic Workflow AutomationModerate complexity, strong differentiation potential
3Predictive Risk and Decision IntelligenceLonger build, highest strategic payoff

Building the Governance Foundation First

Nothing went into build until the operating model was in place. Four components were developed and presented to the board in month one:

AI Governance Charter
Defined who owned AI decisions, what acceptable use looked like, and how accountability would work across the organization.
Model Risk Policy
Set the bar for how AI outputs would be tested and validated before any customer saw them.
Human Review Requirements
Specified the scenarios where a human had to review AI output before action was taken. In construction, where decisions carry real financial consequences, this was non-negotiable.
AI Incident Response Process
Outlined the steps to take when an AI output caused a problem. Integrated into the existing customer SLA structure so it was operational from day one.

Enterprise customers were already asking vendors for AI governance documentation during procurement. Having this framework in place early removed a barrier that was costing deals.

Architecture Direction

For Document Intelligence, the recommended approach was a RAG (Retrieval-Augmented Generation) setup on AWS. Project documents would be ingested into a vector store, indexed by project, document type, and date. A hybrid retrieval method combining semantic and keyword search would handle the domain-specific, mixed-format language common in construction documentation.

A confidence scoring layer was built in to surface low-certainty outputs for human review, which addressed the CTO's core concern about reliability. An evaluation framework tracked accuracy, hallucination rate, and user acceptance by document type from the start, not as an afterthought.

Section 05

Execution Plan

Months 1 and 2: Foundation

  • Finalize AI Governance Charter and Model Risk Policy; present to board
  • Build RAG proof-of-concept against the existing document repository
  • Define success metrics tied to the Series C fundraising narrative
  • Run LLM evaluation and prompt engineering training with the data science team
  • Facilitate a structured executive session to reconcile the CEO, CTO, and VP Product priorities into one roadmap

Months 3 and 4: Build and Validate

  • Release internal beta of Document Intelligence to three pilot customers
  • Stand up the evaluation pipeline tracking accuracy, latency, hallucination rate, and user feedback
  • Develop the hiring plan for a permanent AI function, starting with an ML Engineer and AI Product Manager
  • Produce architecture design for Priority 2, agentic workflow automation

Months 5 and 6: Scale and Govern

  • General availability release of Document Intelligence, with human review built into the workflow
  • Launch monthly AI performance reviews chaired by the CTO
  • Publish the full AI roadmap to the company to drive alignment across product, engineering, and operations
  • Complete the onboarding documentation for an incoming permanent Head of AI
Section 06

Business Impact Targets

MetricTarget
Time to first AI feature in production90 days
Pilot customer satisfaction with AI featuresOver 80% positive
Reduction in document review time for end users40 to 60 percent
AI governance framework board-approved before GA releaseYes
Self-reported AI literacy improvement across product and engineeringOver 70%
AI differentiation narrative ready for Series CDelivered by month 4
Outcome

What this delivered.

Getting three executives aligned and moving in the same direction was the first real win. Everything else depended on it.

From there, the organization moved from zero AI in production to a working, customer-tested proof of concept in 90 days. The governance framework satisfied the procurement requirements of enterprise buyers who had previously stalled. The data science team came out of the engagement with hands-on LLM experience they did not have going in.

By month six, Ironframe had a board-approved AI strategy, a production feature with measurable customer validation, and a hiring plan for the next phase of AI development.

They went into their Series C with a story that held up to scrutiny.

Ironframe Technologies is a fictitious organization. This scenario is a composite drawn from patterns commonly observed in scaling B2B SaaS companies. It is included here to illustrate strategic thinking and leadership approach.