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

Bahar Bahramian Dehkordi (), Marko Torkkeli (), Adeel Tariq () and Marina Dabić ()
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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

A chapter in Artificial Humans, 2026, pp 49-72 from Springer

Abstract: 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.

Keywords: Industry 5.0; AI adoption; In-house development; Outsourcing; Innovation; Human-AI collaboration (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:fuobcp:978-3-032-06604-6_4

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DOI: 10.1007/978-3-032-06604-6_4

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