The bright and dark sides of AI innovation for sustainable development: Understanding the paradoxical tension between value creation and value destruction

This paper explores the bright and dark sides of artificial intelligence (AI) innovation for sustainable development. While most research has concentrated on the positive impacts of AI innovation, this study examines the paradoxical tension that arises between sustainable value creation and sustainable value destruction when managing AI innovation to achieve sustainable development. We conceptualize a model explaining the antecedents and the nature of this tension, and we discuss seven illustrative cases that exemplify the practical applicability of the model's elements. Our findings show that conflicting sub-objectives across environmental, social, and economic domains, along with the divergent interests of stakeholders, are key antecedents of the paradoxical tension. Furthermore, our model illustrates that sustainable value can be created by: (i) reducing grand challenges through automation in defining problems' root cause, and (ii) mitigating grand challenges through augmentation of firms' capabilities. However, we argue that sustainable value can be also destroyed when failing to address grand challenges or introducing new grand challenges. According to our study, this is due to predictable or unpredictable issues that arise during the design, development, or deployment of AI innovation. Finally, the discussion of our model further explores, through five theorical propositions, the specific elements of AI innovation that enable and amplify this paradoxical tension. • Managing AI innovation entails a paradoxical tension between sustainable value creation and destruction. • Multiple objectives and interests are the antecedents of the paradoxical tension. • Sustainable value creation involves grand challenge reduction or mitigation. • Sustainable value destruction is failing to address or introducing a grand challenge. • AI automation/augmentation and problems in AI lifecycle affect the paradoxical tension.