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Human-Centered AI (HCAI) advocates the development of AI applications that are trustworthy, usable, and based on human needs. While the conceptual foundations of HCAI are extensively discussed in recent literature, the industry practices and methods appear to lag behind. To advance HCAI method development, current practices of AI developer companies need to be understood. To understand how HCAI principles manifest in the current practices of AI development, we conducted an interview study of practitioners from 12 AI developer companies in Finland, focusing on the early stages of AI application development. Our thematic analysis reveals current development practices and identifies four main challenges: (i) detachment of HCAI work from technical development, (ii) clients' central role as the source of user requirements, (iii) uncertain nature of AI, and (iv) lack of value-based understanding of AI. The findings inform the development of HCAI methods and implementation of HCAI principles in AI application development. publishedVersion |