AI startups for good: A taxonomy and archetypes of sustainable business models

Artificial Intelligence (AI) empowers startups to have a positive impact on personal and professional lives. Given that power, research on how business models utilize AI to contribute to sustainability is needed. Knowledge about various design options can help business model developers minimize unnecessary efforts and mitigate potential risks. This paper addresses this issue through twofold contributions: First, we provide a taxonomy of AI startup business models for good. Based on the analysis of 100 real-world instances, the taxonomy captures how AI is currently used in startups to achieve sustainability value. This helps scholars and practitioners be aware of and navigate key characteristics of such business models, as well as understand the boundaries of the overarching design solution space. Second, we present five archetypical configurations: AI environmental analyser, AI healthcare improver with patient data, AI product manufacturer for farming and grocery, AI surveillant and reporter of customer-provided data, and AI Energy Improver. These archetypes reflect common business model characteristic combinations that practitioners can use to develop or redesign their businesses. Researchers can further examine these archetypes to generate new insights, for instance, by evaluating their success and contributions to sustainable development.