EAAI Journal 2026 Journal Article
A knapsack-based entropy-clustering framework for multi-criteria decision making under epistemic uncertainty
- Yong Tan
- Abdollah Hadi-Vencheh
- Jorge Antunes
- Peter Wanke
Assessing sustainable socio-economic welfare using artificial intelligence is challenging due to the large number of interdependent environmental, social, and economic indicators involved and the uncertainty surrounding their relative importance. This study aims to develop an artificial intelligence–based decision support framework for sustainable socio-economic welfare assessment that identifies the most informative indicators, reveals structural differences among countries, and evaluates how alternative welfare representations affect national performance rankings. To achieve this, we propose a hybrid artificial intelligence–based methodology that integrates knapsack-based combinatorial optimization for variable selection, mutual information–driven clustering for structural grouping, and multi-criteria decision-making techniques for performance evaluation. This framework treats welfare assessment as a problem of informational uncertainty and structural heterogeneity rather than a fixed aggregation task. Applied to cross-country sustainability and socio-economic data, the approach uncovers distinct welfare profiles and shows that country rankings vary systematically depending on whether sustainability-oriented or socio-economic-oriented indicators are emphasized. The socio-economic profile exhibits greater dispersion and differentiation across countries, while the sustainability-oriented profile produces more clustered performance patterns. Sensitivity and robustness analyses confirm that these differences are structurally driven rather than artifacts of weighting choices. These findings demonstrate that welfare rankings are contingent on the informational structure of indicators and highlight the importance of variable selection in policy evaluation. Methodologically, the study contributes a generalizable artificial intelligence-enabled (AI-enabled) framework for high-dimensional decision analysis. Substantively, it provides policymakers with a more transparent way to understand trade-offs between sustainability and socio-economic development.