Knowledge Brokering for AI Outsourcing Governance: An Agency and Relational Contract Theory Perspective

Emerging technology outsourcing offers entrepreneurial opportunities and governance challenges, particularly in AI and machine learning. This study examines the role of knowledge brokering in managing cross-organizational and internal barriers in outsourcing relationships. Guided by the agency and relational contract theory, it explores how knowledge brokering reduces information asymmetry, fosters trust and aligns organizational goals. A qualitative case study of a mid-sized AI service provider operating across Iran, Canada, and Germany, using interviews, archival documents, and field observations, highlights how knowledge brokers enhance client education, build confidence in AI solutions, address data security concerns, and manage internal misalignments. By integrating formal governance mechanisms with trust-based collaboration, this study develops a framework for understanding knowledge brokering’s role in AI outsourcing success and offers practical strategies for managing complex technology partnerships.