Business Model Canvas to Create and Capture AI-enabled Public Value

Abstract

The compatibility between the business model and AI-enabled value creation is paramount for the sustainability of organizations. The public sector lags the private sector in the race to AI readiness and adoption. Although the concept of the business model for the public sector has previously been discussed, we found a lack of evidence for the process of adaption of the business model as a value creation and capture tool from commercial motives to public value motives. This paper adapts the conventional business model canvas for the public sector as it pertains to the design and development of AI systems. Employing a design-science research approach, we postulate five design principles that public agencies must follow to design and deploy AI-enabled public services.