About the project

Finland has a wealth of expertise, technology and good ideas, but these do not always translate into new growth, productivity and wellbeing. The TRANSFORM-AI project studies why this happens and how the situation can be improved in the future. The issue is not a lack of resources, but factors such as how decisions are made.

Businesses are investing, but the emphasis is on making existing operations more efficient rather than generating new growth. Growth ambitions and risk-taking remain below those of international peers. Similarly, investment in AI mainly targets efficiency gains rather than the creation of new business or markets.

This is not the result of isolated mistakes, but of the environment in which decisions are made. Organisational incentives, performance measures and operating models encourage caution, short-term thinking and the optimisation of existing activities. In such an environment, rational decision-making systematically leads to excessive caution.

AI does not solve this problem on its own; it may have the opposite effect. It builds on existing goals and data, and therefore reinforces established operating models. Without changes to the decision-making environment, AI may amplify existing biases: increasing efficiency while deepening the lack of growth and renewal.

At the same time, a key source of competitiveness — intangible capital, including skills, leadership, brands and networks — remains underused. Although these factors are central sources of productivity and competitiveness, they are not systematically managed, measured or scaled up. As a result, innovations fail to scale into economic value, and businesses adapt to markets without shaping them.

In working life, technology is also developing faster than our ability to use it. If current trends continue, Finland risks falling permanently behind in growth that generates high added value — not because we lack expertise, but because we cannot turn that expertise into impact. The central question is therefore not how much expertise or technology we have, but who will change the decision-making environment, and how, to make renewal and growth possible.

Project impact

The project generates impact through close dialogue and collaboration with stakeholders, following the Double Diamond model: problems are defined together, solutions are developed and tested in practice, and then scaled up across organisations and into policy. In this way, the project provides practical means to improve productivity, accelerate the adoption of innovations and strengthen sustainable wellbeing, in line with the objectives of the Economy and Welfare in an Era of Strategic Competition programme (WELEC).

TRANSFORM-AI advances WELEC’s three overarching objectives — improving productivity, accelerating the adoption of innovations and strengthening a sustainable economy — by developing solutions to improve decision-making environments, leadership, intangible capital and the use of AI. The project’s pathway to impact connects research with close stakeholder dialogue to understand the root causes of problems, co-develop practical solutions and pilot them in organisations and decision-making.

Project impact objectives

Productivity and growth

The project develops ways to turn skills, leadership and intangible capital into sustainable growth. Particular attention is paid to decision-making practices, incentives and organisational culture.

Impact: Investment is directed more towards new growth, and intangible capital is used systematically.

Skills and working life

The project strengthens understanding of metacognitive skills and the ability to use AI at work.

Impact: Productivity improves and work becomes more meaningful.

Adoption of innovations

The project develops change management and identifies biases and structures that slow down renewal.

Impact: Organisations become better able to renew themselves, and technology adoption accelerates.

Responsible AI

The project supports the strategic and ethically sustainable adoption of AI.

Impact: AI strengthens decision-making and renewal.

Sustainability and wellbeing

The project ensures that technological transformation supports social acceptability and long-term wellbeing.

Impact: Human-centred and sustainable economic renewal.

The TRANSFORM-AI consortium is led by Aki Koponen from the University of Turku.

The consortium comprises the University of Turku, the University of Vaasa, the University of Jyväskylä, the University of Oulu, Aalto University, Tampere University and Pellervo Economic Research PTT.