A Positioning Framework for Generative AI and Robotics to Support Insourcing and Reduce Outsourcing Dependency

AI is predicted to contribute $15.7 trillion to the global economy by 2030, higher than the combined output of India and China. Both the US and UK governments have announced programmes to embrace AI in 2025. There are many case studies of companies achieving cost savings such as Klarna reducing marketing costs by $10m. AI has now been extended into providing content which is referred to as Generative AI (GenAI). Generative AI has the potential to revolutionise the way work is undertaken across all industries, with predictions expecting AI to automate half of all work between 2040 and 2060. Recent advances in GenAI and robotics are transforming organisational decision-making, production capabilities, and global supply chains. While prior research has extensively discussed the economic and ethical implications of these technologies, there is limited theoretical guidance to support organisations in systematically adopting GenAI and robotics to enable insourcing and reverse long-standing outsourcing practices. This paper addresses this gap by proposing a holistic positioning framework to support organisational decision-making regarding GenAI and robotics adoption. Using a thematic analysis of academic literature, sixteen GenAI adoption challenges were identified and synthesised into four core dimensions, Human, Organisational, Environmental, and Technical, augmented by a fifth dimension addressing robotics-specific factors. This research contributes a novel positioning framework to the emerging GenAI and robotics literature and offers practical value for organisations considering insourcing as an alternative to trade tariffs and offshoring.