The governance of federated learning a decision framework for organisational archetypes

Federated learning (FL) is a machine learning technique that distributes model training to multiple clients while allowing clients to keep their data local. Although the technique allows one to break free from data silos keeping data local, to coordinate such distributed training, it requires an orchestrator, usually a central server. Consequently, organisational issues of governance might arise and hinder its adoption in both competitive and collaborative markets for data. In particular, the question of how to govern FL applications is recurring for practitioners. This research commentary addresses this important issue by inductively proposing a layered decision framework to derive organisational archetypes for FL's governance. The inductive approach is based on an expert workshop and post-workshop interviews with specialists and practitioners, as well as the consideration of real-world applications. Our proposed framework assumes decision-making occurs within a black box that contains three formal layers: data market, infrastructure, and ownership. Our framework allows us to map organisational archetypes ex-ante. We identify two key archetypes: consortia for collaborative markets and in-house deployment for competitive settings. We conclude by providing managerial implications and proposing research directions that are especially relevant to interdisciplinary and cross-sectional disciplines, including organisational and administrative science, information systems research, and engineering.