This study investigates the evolution of open innovation models in AI development as organizations transition from Industry 4.0 to Industry 5.0. Industry 4.0 has widely adopted open innovation as a tool for achieving efficiency, integrating external knowledge to optimize AI-driven automation and process improvements. However, the emerging paradigm of Industry 5.0 shifts this focus towards a more human-centered approach, emphasizing ethical considerations and societal impact in technology development. Through comparative case studies across industries such as manufacturing, healthcare, and finance, this research identifies strategic shifts from efficiency-oriented, inbound open innovation to more coupled and outbound models that prioritize inclusivity and ethical alignment. Key findings highlight an expansion of collaborative networks to include interdisciplinary stakeholders—such as regulators, ethicists, and user communities—creating an “inclusive innovation” approach that supports responsible AI practices. This evolution reflects a managerial shift, where open innovation serves not only as a competitive advantage but as a means of aligning AI systems with social values, ensuring transparency and accountability. The study contributes to open innovation literature by framing it within the context of Industry 5.0, providing actionable insights for managers and offering a foundation for further research on open innovation as a tool for ethical AI deployment and societal alignment.