## 2 Literature Review
### Industry 5.0 and the OECD Framework on AI in Warranty Management  
Industry 5.0 represents a step forward from Industry 4.0, integrating a humanistic and sustainable approach in the use of advanced technologies, such as artificial intelligence (AI) and the Internet of Things (IoT) [6]. This emerging paradigm, promoted by the European Commission, emphasizes the need for people-centered and environmentally friendly industrial development, promoting resilience, sustainability, and social responsibility in industrial processes. In parallel, the OECD Framework on AI [34] sets out ethical principles to ensure that AI systems are safe, transparent, and non-discriminatory, which is critical in sensitive applications such as warranty management and aftersales services. By applying these principles to warranty management, companies can not only improve operational efficiency, but also ensure that automated decisions (e.g., failure prediction or service personalization) meet high ethical and transparency standards, increasing customer trust and optimizing the aftersales service experience. Digital transformation initiatives in warranty management must align with the principles of transparency, explainability, risk management, safety, and fairness to ensure responsible and ethical AI applications. Transparency and explainability are critical in AI-driven warranty analytics, as automated decision-making must be auditable and interpretable to avoid biases in claim evaluations. ISO 42001, the international standard for AI governance, establishes guidelines for ensuring AI-driven warranty assessments adhere to ethical and regulatory frameworks, minimizing the risks associated with biased predictions, incorrect warranty claims, and opaque decision-making processes [35; 36]. Additionally, ISO 55000 (Asset Management) and ISO 9001 (Quality Management) reinforce best practices by ensuring that AI-based predictive maintenance aligns with reliability and safety expectations, thus optimizing warranty coverage without compromising operational integrity. Industry leaders, such as Siemens' Railigent and Rolls-Royce's TotalCare, demonstrate how AI-driven warranty systems can enhance fairness and accountability by ensuring real-time monitoring, proactive maintenance, and ethical decision-making in asset life-cycle management. By integrating these standards and best practices, companies can mitigate AI-related risks, enhance customer trust, and ensure compliance with global regulatory requirements while optimizing warranty strategies [37; 38]. The transition to Industry 5.0 in warranty management brings several benefits, as it introduces a more humanized and personalized approach to processes. This translates into a dynamic adaptation of warranty policies, based on individual customer needs and the current status of assets. Instead of a reactive approach, Industry 5.0 enables companies to anticipate problems through continuous monitoring and predictive analysis, minimizing operational disruptions and improving asset availability. For example, companies such as BMW have integrated IoT sensors into their vehicles to collect real-time data on component status [39]. This information, analyzed with AI, makes it possible to predict possible failures and personalize maintenance interventions, optimizing the life of assets and reducing maintenance costs. This approach not only makes it possible to offer maintenance solutions adapted to real use, but also promotes sustainability by reducing unnecessary repairs, extending the life of products. The OECD Framework on AI sets out a number of key principles for AI systems to be used ethically and responsibly. These principles include transparency, safety, explainability, and non-discrimination in automated decision-making processes. In warranty management,these principles ensure that failure predictions and claim assessments are fair and auditable, avoiding bias and protecting the privacy of customer data.