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The dark sides of AI systems and their impact on business sustainability: a socio-technical systems perspective

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  • Anil Kumar Biswal
  • Rajat Kumar Behera
  • Kumod Kumar
  • Priya Nath

Abstract

The dark sides of AI systems, including security, privacy, quality, and lack of transparency threats, can threaten business sustainability by creating environmental, social, and operational risks. These issues can lead to reputational damage, legal liabilities, reduced workforce morale, and operational inefficiencies that counteract productivity gains. Hence, this study explored the impact of dark sides of AI systems on business sustainability by grounding on socio-technical systems theory. A total of 310 data points were collected from the participants of diversified industries using surveys. The study adopted a mixed research methodology. The qualitative approach was used to operationalise the measurement items. The quantitative approach was used for data analysis. The findings reveal that security, privacy, quality, and lack of transparency threats associated with AI systems have a positive effect on poor decision-making quality, which in turn has a negative effect on business sustainability. Moreover, a weak sustainability strategy strengthens the negative impact of poor decision-making quality on business sustainability.

Suggested Citation

  • Anil Kumar Biswal & Rajat Kumar Behera & Kumod Kumar & Priya Nath, 2026. "The dark sides of AI systems and their impact on business sustainability: a socio-technical systems perspective," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 52(6), pages 35-69.
    • Handle: RePEc:ids:ijbisy:v:52:y:2026:i:6:p:35-69
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