Managing Paradoxical Tensions in the Implementation of Explainable AI for Product Innovation

This study examines how organizations manage tensions that arise during the implementation of Explainable Artificial Intelligence (XAI) in product innovation. While XAI has advanced technically, its impact on organizational routines, human interpretation of algorithmic outputs, and human-AI dynamics...

Full description

Saved in:
Bibliographic Details
Published in:2025 33rd International Conference on Enabling Technologies: Infrastructure for Collaborative Enterprises (WETICE) pp. 1 - 6
Main Authors: Amarilli, Fabrizio, Uboldi, Sara, Saraceni, Francesca, Tencati, Lorenzo
Format: Conference Proceeding
Language:English
Published: IEEE 23.07.2025
Subjects:
Collaboration
Complexity theory
Digital transformation
Explainable AI
Heuristic algorithms
Navigation
Organizations
paradoxical tensions
product innovation
Standardization
Standards organizations
Technological innovation
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Abstract This study examines how organizations manage tensions that arise during the implementation of Explainable Artificial Intelligence (XAI) in product innovation. While XAI has advanced technically, its impact on organizational routines, human interpretation of algorithmic outputs, and human-AI dynamics remains underexplored. Drawing on a qualitative case study of a global confectionery firm, we analyze the introduction of an XAI solution using participatory action research and paradox theory. We identify four persistent tensions: automation vs. human judgment, transparency vs. complexity, speed vs. accuracy, and standardization vs. customization. Rather than resolving these conflicts, the organization navigated them through both/and strategies that enabled human-AI collaboration. The findings extend paradox theory to XAI-driven innovation and contribute to digital transformation literature by showing how explainability supports knowledge articulation, learning, and adoption. The study also offers practical guidance for designing XAI systems that complement human expertise in complex innovation settings.
AbstractList This study examines how organizations manage tensions that arise during the implementation of Explainable Artificial Intelligence (XAI) in product innovation. While XAI has advanced technically, its impact on organizational routines, human interpretation of algorithmic outputs, and human-AI dynamics remains underexplored. Drawing on a qualitative case study of a global confectionery firm, we analyze the introduction of an XAI solution using participatory action research and paradox theory. We identify four persistent tensions: automation vs. human judgment, transparency vs. complexity, speed vs. accuracy, and standardization vs. customization. Rather than resolving these conflicts, the organization navigated them through both/and strategies that enabled human-AI collaboration. The findings extend paradox theory to XAI-driven innovation and contribute to digital transformation literature by showing how explainability supports knowledge articulation, learning, and adoption. The study also offers practical guidance for designing XAI systems that complement human expertise in complex innovation settings.
Author Saraceni, Francesca
Tencati, Lorenzo
Uboldi, Sara
Amarilli, Fabrizio
Author_xml – sequence: 1
  givenname: Fabrizio
  surname: Amarilli
  fullname: Amarilli, Fabrizio
  email: fabrizio.amarilli@dcu.ie
  organization: Dublin City University,Business School,Dublin,Ireland
– sequence: 2
  givenname: Sara
  surname: Uboldi
  fullname: Uboldi, Sara
  email: sara.uboldi@intellico.ai
  organization: Intellico.ai Srl,Milan,Italy
– sequence: 3
  givenname: Francesca
  surname: Saraceni
  fullname: Saraceni, Francesca
  email: francesca.saraceni@intellico.ai
  organization: Intellico.ai Srl,Milan,Italy
– sequence: 4
  givenname: Lorenzo
  surname: Tencati
  fullname: Tencati, Lorenzo
  email: lorenzo.tencati@intellico.ai
  organization: Intellico.ai Srl,Milan,Italy
BookMark eNo1j89KxDAYxCPoQdd9Aw_xAbrmy59mc1xK1cKKeyh4EZZvk3QNtElpq6xvb1n1MgO_GQbmhlzGFD0h98BWAMw8vJV1VZS5FhJWnHF1ppxpeUGWRpu1EKByBRyuyfsLRjyGeKQ7HNClU7DY0trHMaQ40hDp9OFp1fWt73yccJoxTQ0tT32LIeKh9XRT0SYNdDck92knWsWYvs7FW3LVYDv65Z8vSP1Y1sVztn19qorNNgtGTJmTvrFgrGJOGsks08Y2Trq11miUk7PkMj84B4ppZwVwbxSABj5nWqFYkLvf2eC93_dD6HD43v9_Fj-mi1J0
ContentType Conference Proceeding
DBID 6IE
6IL
CBEJK
RIE
RIL
DOI 10.1109/WETICE67341.2025.11092074
DatabaseName IEEE Electronic Library (IEL) Conference Proceedings
IEEE Proceedings Order Plan All Online (POP All Online) 1998-present by volume
IEEE Xplore All Conference Proceedings
IEEE Electronic Library (IEL)
IEEE Proceedings Order Plans (POP All) 1998-Present
DatabaseTitleList
Database_xml – sequence: 1
  dbid: RIE
  name: IEEE Electronic Library (IEL)
  url: https://ieeexplore.ieee.org/
  sourceTypes: Publisher
DeliveryMethod fulltext_linktorsrc
EISBN 9798331565121
EndPage 6
ExternalDocumentID 11092074
Genre orig-research
GroupedDBID 6IE
6IL
CBEJK
RIE
RIL
ID FETCH-LOGICAL-i93t-d4efc19c50d4940c079cfd4d877a95d4a95646bdd1507dc312e9511712d4a75a3
IEDL.DBID RIE
IngestDate Wed Aug 20 06:20:51 EDT 2025
IsPeerReviewed false
IsScholarly true
Language English
LinkModel DirectLink
MergedId FETCHMERGED-LOGICAL-i93t-d4efc19c50d4940c079cfd4d877a95d4a95646bdd1507dc312e9511712d4a75a3
PageCount 6
ParticipantIDs ieee_primary_11092074
PublicationCentury 2000
PublicationDate 2025-July-23
PublicationDateYYYYMMDD 2025-07-23
PublicationDate_xml – month: 07
  year: 2025
  text: 2025-July-23
  day: 23
PublicationDecade 2020
PublicationTitle 2025 33rd International Conference on Enabling Technologies: Infrastructure for Collaborative Enterprises (WETICE)
PublicationTitleAbbrev WETICE
PublicationYear 2025
Publisher IEEE
Publisher_xml – name: IEEE
Score 2.2983012
Snippet This study examines how organizations manage tensions that arise during the implementation of Explainable Artificial Intelligence (XAI) in product innovation....
SourceID ieee
SourceType Publisher
StartPage 1
SubjectTerms Collaboration
Complexity theory
Digital transformation
Explainable AI
Heuristic algorithms
Navigation
Organizations
paradoxical tensions
product innovation
Standardization
Standards organizations
Technological innovation
Title Managing Paradoxical Tensions in the Implementation of Explainable AI for Product Innovation
URI https://ieeexplore.ieee.org/document/11092074
hasFullText 1
inHoldings 1
isFullTextHit
isPrint
link http://cvtisr.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwlV3PS8MwFH64IeJJxYm_ieC1W5umSXOUseFAxg5FdxBGkpfCDrYyO_HPN8m6iQcPXkppSgMvJe9L8r7vA7iXmY5zhjxSyHjEJMVIyzyNSmUc3ohRqWDT-fwkptN8PpezlqweuDDW2lB8Zvv-NpzlY23Wfqts4NUxqct5HegIwTdkrQO4a3UzBy-jYjIcceEmZrfwo1l_-_4v55SQOMZH_-zyGHo_FDwy2yWXE9iz1Sm8bl2FyEytFNZfPsKk8DXo7uchy4o4OEeC4O9byymqSF0SX2jXsqTIw4Q4nOq_7ZVeyWTnitqDYjwqho9Ra48QLWXaRMhsaRJpshiZZLGJhTQlMsyFUDJD5i6ccY3oIR-aNKHWoalEJNS1iUylZ9Ct6sqeA6ExS4RAQZnVDBVVucVUS50l3LhJSF9Az0dm8b4RwFhsg3L5x_MrOPTx91ugNL2GbrNa2xvYN5_N8mN1G4btG5q7mvg
linkProvider IEEE
linkToHtml http://cvtisr.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwlV3PS8MwFH7oFPWk4sTfRvDarU2TpjnK2Fhxjh2K7iCMNC-FHWylbuKfb9J1Ew8evJTQ0gReSt6X9H3fB3AveebHDCNPIYs8Jil6mYxDL1fa4g0flaptOp9HYjyOp1M5acjqNRfGGFMXn5mOa9b_8rHUS3dU1nXqmNTmvG3Y4YxRf0XX2oO7Rjmz-9JPk14_EnZptls_yjvrN355p9SpY3D4z0GPoP1DwiOTTXo5hi1TnMDr2leITFSlsPxyMSapq0K3nw-ZF8QCOlJL_r41rKKClDlxpXYNT4o8JMQiVde303olycYXtQ3poJ_2hl5jkODNZbjwkJlcB1JzH5lkvvaF1DkyjIVQkiOzl4hFGaIDfajDgBqLpwIRUPtMcBWeQqsoC3MGhPosEAIFZSZjqKiKDYaZzHgQabsMZefQdpGZva8kMGbroFz8cf8W9ofp02g2SsaPl3Dg5sIdiNLwClqLammuYVd_LuYf1U09hd_Ygp4_
openUrl ctx_ver=Z39.88-2004&ctx_enc=info%3Aofi%2Fenc%3AUTF-8&rfr_id=info%3Asid%2Fsummon.serialssolutions.com&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=proceeding&rft.title=2025+33rd+International+Conference+on+Enabling+Technologies%3A+Infrastructure+for+Collaborative+Enterprises+%28WETICE%29&rft.atitle=Managing+Paradoxical+Tensions+in+the+Implementation+of+Explainable+AI+for+Product+Innovation&rft.au=Amarilli%2C+Fabrizio&rft.au=Uboldi%2C+Sara&rft.au=Saraceni%2C+Francesca&rft.au=Tencati%2C+Lorenzo&rft.date=2025-07-23&rft.pub=IEEE&rft.spage=1&rft.epage=6&rft_id=info:doi/10.1109%2FWETICE67341.2025.11092074&rft.externalDocID=11092074