Business and Management INK

When Do You Need to Trust a GenAI’s Input to Your Innovation Process?

December 13, 2024 368

In this post, co-authors Frank T. Piller, Tucker J. Marion, and Mahdi Srour reflect on the inspiration behind their research article, “Generative AI, Innovation, and Trust,” published in The Journal of Applied Behavioral Science.

In the rapidly evolving world of generative AI (GenAI), understanding how to integrate these technologies into the innovation processes effectively is crucial. In our research, we explore into how companies can harness the power of GenAI while maintaining trust in its outcomes.

Trust is a central concept when dealing with AI — we all experienced the power of ChatGPT when tasking it with knowledge-intensive tasks, but also its “hallucinations”—errors where AI generates misleading or incorrect information. In the context of innovation, this challenge is even more profound, as you want to create something new, hence do not easily know what the “truth” is.

Our collaboration began with a shared fascination for how AI can reshape innovation. Frank Piller, based at RWTH Aachen University in Germany, Tucker Marion and Mahdi Srour, who were researching at Northeastern University, connected over a startup called Ada IQ.

This Northeastern University spin-out is pioneering the integration of AI into every step of product development. Our joint interest in Ada IQ inspired us to explore how different types of AI models can be effectively employed across various stages of the innovation process.

The degree of trust required from GenAI outputs depends significantly on the phase of innovation. For instance, while GenAI’s hallucinations can be problematic in concept validation, they can foster creativity during an early ideation phase. Conversely, expert models trained on specific industry data are essential in later stages, requiring precise, domain-specific insights.

JABS Special Form 2024 AI Trust and Innovation - Figure 1, from Generative AI, Innovation, and Trust.

In our discussions, we quickly settled with three key questions for companies looking to integrate GenAI for innovation:

  • the necessity of trust in AI outcomes,
  • the choice between general and expert models,
  • and the alignment of human capabilities with AI tools.

In our paper, we introduce a landscape to navigate the potential applications of GenAI in innovation management. This framework provides guidance on when to use general versus expert models and how to align AI tools with specific tasks and stages in the innovation process – always with the level of required trust in mind.

In consequence, companies need to invest not just in technology but also in developing human expertise to interpret and utilize AI outputs effectively. Here, the evolving capabilities of AI, including the rise of AI agents, provide interesting new opportunities and challenges.

In conclusion, our paper underscores the importance of a nuanced approach to GenAI integration, highlighting both the opportunities and challenges of this transformative technology. By using the landscape we developed, organizations can better navigate the complexities of GenAI, ultimately unlocking its full potential to drive innovation forward.

Frank T. Piller, PhD (pictured) is a professor of technology management and head of chair of the Institute for Technology & Innovation Management at RWTH Aachen University. He received his doctorate in mass customization from the University of Würzburg and is the chairman of the largest German cross-industry network on "Business Model Innovation for Industry 4.0." As a researcher, he has received numerous awards, including most recently the PDMA Co-Creation Award and the "Innovating Innovation" award from Harvard Business Review and McKinsey. Tucker J. Marion, PhD is an associate professor of entrepreneurship & innovation at the Northeastern University D’Amore-McKim School of Business. He received his doctorate degree in industrial engineering from The Pennsylvania State University and has over twenty years of experience product design, development and commercialization. He is a successful researcher and has been published in numerous academic journals, including Harvard Business Review, MIT Sloan Management Review, and the Journal of Business Venturing. Mahdi Srour is a co-founder of Ada IQ, a company at the forefront of leveraging artificial intelligence to transform product design. He is a recent Graduate Fellow from Northeastern University where he focused on the development of a proprietary generative multimodal artificial intelligence. He is also member of the Innovation Honors Class at RWTH Aachen University.

View all posts by Frank T. Piller, Tucker J. Marion and Mahdi Srour

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