Cooperatives and the Use of Artificial Intelligence: A Critical View

Abstract

Digital Transformation (DT) has become an important issue for organisations. It is proven that DT fuels Digital Innovation in organisations. It is well-known that technologies and practices such as distributed ledger technologies, open source, analytics, big data, and artificial intelligence (AI) enhance DT. Among those technologies, AI provides tools to support decision-making and automatically decide. Cooperatives are organisations with a mutualistic scope and are characterised by having participatory cooperative governance due to the principle of democratic control by the members. In a context where DT is here to stay, where the dematerialisation of processes can bring significant advantages to any organisation, this article presents a critical reflection on the dangers of using AI technologies in cooperatives. We base this reflection on the Portuguese cooperative code. We emphasise that this code is not very different from the ones of other countries worldwide as they are all based on the Statement of Cooperative Identity defined by the International Cooperative Alliance. We understand that we cannot stop the entry of AI technologies into the cooperatives. Therefore, we present a framework for using AI technologies in cooperatives to avoid damaging the principles and values of this type of organisations.