Abstracts Business

Business models for sustainable AI consulting – Conceptualizing interorganizational sustainable AI services through business model design

by Lauri Eneh

The utilization of Artificial Intelligence (AI) systems is growing rapidly in various domains. Together with the great benefits, the potential for unintended negative effects caused by these systems has been recognized. Indeed, there is an increasing consensus among researchers and practitioners on the need to mitigate the potential harms and risks brought about by AI systems. Consequently, effective AI governance is essential for sustainable AI development and use. Sustainable AI refers to creating and operating trustworthy AI for the benefit of society, the environment, and businesses. To contribute, AI operators must address the sustainability concerns of their AI systems. However, the fact that most organizations do not have the capabilities to tackle these issues alone, makes it a large-scale challenge requiring cooperation between multiple actors within the AI governance ecosystem. Private companies are expected to play a role in achieving AI sustainability, along with public organizations and international entities. Nevertheless, the role of private consultancies and the nature of their services have not been studied. The objective of this thesis is to study the interorganizational activities and services provided by private consultancies within the AI governance ecosystem and to investigate business models supporting such service offerings. After reviewing literature on sustainable AI and how to achieve it, the empirical part was conducted as case study action research, using business model design and the Business Model Canvas as tools. The business model was developed for Solita, an IT and design consultancy, willing to expand its involvement in the sustainable AI field. Solita had conducted interviews with 26 organizations across 11 industries shortly before this study, through which the state of sustainable AI had been discovered. In this study, insights from the client interview analysis were used as the primary source to inform the client perspective of the business model, while multiple interviews, co-design, and feedback sessions were conducted with Solita employees to uncover the company point of view. As a result, a framework was developed mapping out the sustainable AI consulting services provided by private consultancies into three categories: AI system sustainability assessment, organizational sustainable AI capabilities, and technical enablers for sustainable AI. Moreover, it was discovered that the value expected by clients stems from enhancing AI risk management and improving AI operational excellence, which in turn allows for proving a positive impact resulting in competitive advantage. Eventually, working towards the sustainability of AI is expected to result in financial gains for clients and is important in ensuring social responsibility. However, the value-driven business model supporting such an offering did not differ significantly from the existing business model of Solita. This study contributes to the academic discussion in the emerging field of sustainable AI and AI governance…