AI_4_DSI

Project information:

Official name of the project: AI-Enabled Digital Service Innovation

Duration of the project: 1.8.2026 - 31.7.2028

Project coordinator: University of Vaasa

Project partners: VAMK, VTT

Funding: Business Finland

Budget: 357 188 €

Contact person in VAMK:

Sanna Peltonen, Senior researcher (RDI and Business Unit)

tel. +358 207 663 633, sanna.peltonen@vamk.fi

Reserach area: Smart Design

Project code: 6131/31/2025

Language: English

Project description

The AI_4_DSI project tackles a key challenge for manufacturing SMEs: innovating and scaling AI-enabled digital service systems to support their transition to service-led business models.

The project is led by the University of Vaasa, with VAMK and VTT as partners. The project combines theory and practice, and solutions are co-created together with Finnish manufacturing SMEs, software companies, large firms, and regional development agencies. Special focus is placed on SMEs, where the product–service interface is critical to their business.

The work builds on digital service innovation, productization, and modularity. These form the foundation for scalable solutions and help firms manage the tension between standardization and customer-specific customization.

Total budget of the project is 357188 €. VAMK’s share of the budget is 97189 €. The project is funded by Business Finland / Co-Research 77751 €

Goals

The project aims to advance understanding of three interrelated questions:

how AI can be integrated into a firm’s long-term service strategy
how digital service innovation can be fostered at the ecosystem level, through collaboration between different actors
how AI-enabled service systems can be scaled specifically in manufacturing contexts

These questions are approached through co-creation together with SMEs, software companies, large firms, and regional development agencies. The aim is to develop clear pathways for innovating and scaling AI-enabled digital service systems in practice.

Results

Key outcomes of the project include:

a strategy tool supporting the development of digital service innovation in firms
a framework for the development of AI-enabled service systems
a roadmap supporting the scaling of AI-enabled service systems in manufacturing contexts

In addition, the project contributes new research knowledge on service innovation, productization, modularity, and scalability.

By promoting AI-enabled service models that can reduce waste, energy use, and carbon footprint, the project also supports sustainability. In this way, the project strengthens the competitiveness of Finnish SMEs and contributes to economic renewal and growth.