The role of explainable artificial intelligence (XAI) in innovation processes: a knowledge management perspective

This study investigates the role of Explainable Artificial Intelligence (XAI) in supporting knowledge management during the innovation process. While traditional AI is recognized for sustaining innovation via enhancement of different knowledge management processes, little is known about how XAI specifically impacts these processes by making AI outputs more interpretable for humans. To address this gap, we conduct a single case study on Intellico, an XAI-driven organization specializing in knowledge management solutions for innovation. The study's primary contribution is a model on how XAI facilitates knowledge management along the four creative phases of innovation, namely preparation, incubation, illumination, and verification. The findings challenge the traditional alignment between specific knowledge processes and innovation phases, offering new theoretical insights into the interplay between XAI, knowledge management, and innovation. Additionally, the study provides practical guidance for organizations willing to leverage human-XAI collaboration for innovation purposes.