OUR METHODOLOGY
The Picken Diamond™
Fourteen integrated models. One decision framework.
Designed for board-level AI investment decisions, governance assurance and risk accountability.
An academically grounded system for governing AI investment at board level. Built for leisure and hospitality — fully transferable across all sectors.
Fourteen academically grounded models operate behind the scenes, analysing your AI investments across financial performance, risk, governance and operational impact.
You do not receive model outputs — you receive one clear, board-level verdict.
All model outputs are integrated through the Picken AI Black-Litterman Model (PABLM™), producing a single board-level decision.
The Five Pillars
Financial Controls & Cash Governance
Whether your financial controls are accurate, complete and visible at board level.
Technology & Systems
Whether the technology you are paying for is delivering the return you were promised.
Regulatory Compliance
Whether your AI and technology systems are creating regulatory exposure across data protection, pricing and employment law.
People & Operational Risk
Whether AI systems are understood, adopted and subject to appropriate human oversight.
Strategic Governance
Whether technology investment decisions are aligned with long-term business strategy and board accountability.
The Board Confidence Score™
The Board Confidence Score™ is the single headline output of every engagement. It translates findings across all five pillars into a clear, independent board-level assessment.
The score ranges from 0–100 and reflects governance strength, financial control, and risk exposure.
0–34 CRITICAL — Significant financial and regulatory exposure. Immediate action required.
35–54 INADEQUATE — Material governance gaps. Priority action plan required.
55–74 DEVELOPING — Governance foundations in place but significant gaps remain.
75–89 COMPETENT — Well-governed with identifiable improvement areas.
90–100 EXEMPLARY — Sector-leading governance.
Financial impact is calculated separately and presented in pounds within your report.
The full methodology is proprietary. Clients receive a single board-level verdict and a clear, decision-ready report.
The Fourteen Model Analysis Structure
PAAPM™ — The Picken AI Asset Pricing Model™ Calculates the risk-adjusted return you should rationally expect from any AI investment.
PAPOM™ — The Picken AI Portfolio Optimisation Model™ Treats your entire technology estate as a portfolio and identifies where risk is concentrated.
PAOVM™ — The Picken AI Options Value Model™ Calculates the financial value of running a pilot before full deployment.
PAVR™ — The Picken AI Value at Risk™ Identifies the maximum downside of any AI investment at 95% confidence.
PAA™ — The Picken AI Alpha™ Measures whether your AI systems are outperforming or underperforming their risk-adjusted predictions.
FFTAM™ — The Fama-French Three-Factor AI Model™ Extends PAAPM™ to account for the scale and governance maturity of your organisation.
PAIM™ — The Picken AI Investment Matrix™ Plots every AI investment on a 2x2 grid: Deploy Now | Pilot First | Monitor | Retire.
PASR™ — The Picken AI Sharpe Ratio™ The definitive tie-breaker between competing AI systems — return per unit of governance risk.
Advanced Models — Tier 2
PAAPM+™ — Picken AI Asset Pricing Model Plus. Extends PAAPM™ incorporating BCG portfolio growth theory.
PAPTM™ — Picken AI Pricing Theory Model. Arbitrage Pricing Theory applied to AI investment valuation.
PAFFM™ — Picken AI Five-Factor Model. Fama-French Five-Factor extended for AI governance maturity.
PACFM™ — Picken AI Carhart Four-Factor Model. Adds momentum analysis to the governance assessment.
PACCM™ — Picken AI Consumption Model. Consumption CAPM applied to operational AI investment decisions.
PABLM™ — Picken AI Black-Litterman Model. Capstone model integrating all prior outputs into a single portfolio view.
Full methodology is proprietary and confidential. Clients receive complete model outputs in plain English — one verdict, one report.
THE REGULATORY CALENDAR
CMA — Active oversight of AI-driven pricing in hospitality. Operators unable to explain pricing logic face enforcement action.
ICO — AI-driven HR, monitoring and scheduling systems under active scrutiny. Non-compliance carries immediate risk.
UK AI Bill — Expected 2026. Mandatory AI governance obligations with retrospective exposure.
EU AI Act — Full compliance obligations with fines up to €35 million or 7% of global turnover.
ISO 42001 — Emerging as the benchmark for board-level AI governance and accountability.