A Trust Paradox May Limit the Application of Al-Generated Knowledge

Overview:The extent of knowledge available to society may no longer be limited by human cognition or by refining algorithms. Instead, the interaction of the two may limit knowledge transfer and creation. We examine two behavioral paradoxes: Polanyi’s paradox, which has existed since 1966, and the Trust paradox, which we propose. We study four technology innovations—printing, digitalization, the Internet, and artificial intelligence (AI)—and assess how these paradoxes limit the use of knowledge created by each innovation. We found that while technology has largely overcome Polanyi’s paradox of limiting the transfer of tacit knowledge, the Trust paradox may limit the application of AI-generated knowledge. We identify five relevant drivers of trust—reliability, transparency, association, reciprocity, and accountability—and outline how each impacts and creates challenges for the application of AI.Keywords:: Artificial intelligenceMachine learningTacit knowledgeTrustInnovation Additional informationNotes on contributorsPetra A. NylundPetra A. Nylund is a researcher of strategy and innovation at the Institute of Entrepreneurship and Innovation Science at University of Stuttgart, Germany. She holds a PhD in management from IESE, Barcelona, and an MSc in engineering and business management from KTH, Stockholm. She has created strategies in telecom industries in Africa, Latin America, and Europe. Her recent work centers on ecosystem dynamics in the context of artificial intelligence and its standardization. She also studies the emergence of ecosystems based on other enabling technologies. petra.nylund@eni.uni-stuttgart.deXavier Ferràs-HernándezXavier Ferràs-Hernández is an associate professor of operations mana­gement, innovation, and data sciences at ESADE Business School, Spain. He holds a PhD in business management from the University of Barcelona, an MBA from ESADE, and a telecommunications engineering degree from the Polytechnical University of Catalonia. From 2013 to 2018, he was dean of the Faculty of Business and Communication at the University of Vic. Until 2012, he was director of the Centre for Business Innovation at ACCIO (Catalan Agency for Competitiveness) and was responsible for technology transfer policies, R&D, and development of clusters in Catalonia. xavier.ferras@esade.eduAlexander BremAlexander Brem is an endowed chaired professor and institute head with the University of Stuttgart, Stuttgart, Germany. In addition, he is an honorary professor with the University of Southern Denmark, Sønderborg, Denmark. He is an international research associate at DeMontfort University (UK) and an academic committee member of the Center of Technological Innovation, Tsinghua University, Beijing, China. alexander.brem@eni.uni-stuttgart.de