01849nas a2200181   4500000000100000000000100001008004100002260001900043100003200062700002100094700002800115245010400143856003800247300001200285490000700297520133800304022002501642       2025                            d  c11/2025bWiley1 aDorota Czyżewska‐Misztal1 aChristian Le Bas1 aAnne‐Sophie Thelisson00aArtificial Intelligence as Enabler of Frugal Innovation: Analyzing the Tensions With Paradox Theory  uhttps://doi.org/10.1002/jsc.70006  a859-8770 v343 aABSTRACT The deployment of Artificial Intelligence (AI) in developing countries is increasingly seen as a powerful driver of Frugal Innovation (FI), offering the potential to address pressing social and environmental issues. However, this convergence of sophisticated, high‐cost technology with resource‐constrained environments represents a significant strategic change for organizations, creating inherent paradoxical tensions that are not yet well understood. This study addresses this gap by exploring the paradoxical tensions that emerge when AI enables FI. Using paradox theory as an analytical lens, we conducted a qualitative analysis of 11 case studies of organizations implementing AI‐driven frugal innovations across sectors such as healthcare, agriculture, and transport. Our findings reveal a typology of performing (e.g., cost vs. quality), organizing (e.g., autonomy vs. coordination), and learning (e.g., local needs vs. global expertise) tensions, as well as several combined paradoxes. Theoretically, this research extends paradox theory to the novel context of high‐tech frugal innovation. Practically, it provides managers with a framework for diagnosing challenges and adopting a “both/and” mindset for leading the strategic change required to successfully implement AI in resource‐scarce settings.  a1086-1718, 1099-1697