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Navigating AI Adoption: In-House Development vs. Outsourcing for Industry 5.0

In: Artificial Humans

Author

Listed:
  • Bahar Bahramian Dehkordi

    (Lappeenranta-Lahti University of Technology)

  • Marko Torkkeli

    (Lappeenranta-Lahti University of Technology)

  • Adeel Tariq

    (Lappeenranta-Lahti University of Technology)

  • Marina Dabić

    (University of Dubrovnik
    University of Ljubljana School of Economics and Business)

Abstract

In our modern world, artificial intelligence (AI) has a critical role in transforming organizational innovation. Therefore, it is important to understand how AI adoption strategies may impact the collaboration between humans and AI. For decision-makers and managers in different organizations, it is critical to figure out whether it makes more sense to develop AI tools in-house or get support from outsiders and third parties to use the best out of AI solutions. This chapter explores how making the decision to adopt one of the AI development strategies—in-house or outsourced—impacts human-AI collaboration and human-centric innovation within the organization. In our study, we discuss the different advantages, disadvantages, and challenges of both of these two strategies based on insights that have been collected through conducting interviews with experts. The findings of this chapter offer a comprehensive overview of these strategies that may help the decision-makers maximize the benefits of AI adoption by selecting the strategy suitable based on their organization’s circumstances.

Suggested Citation

Handle: RePEc:spr:fuobcp:978-3-032-06604-6_4
DOI: 10.1007/978-3-032-06604-6_4
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