Paper Number

2049

Paper Type

Complete

Description

As artificial intelligence (AI) increasingly penetrates service frontlines, understanding its role in creating business value is crucial for leveraging it strategically. Grounded in service-dominant logic, our study examines how AI reshapes the paradigm of value co-creation in service frontlines, incorporating mechanical intelligence, which addresses service automation, and feeling intelligence, which manages interactions with customers. We hypothesize that these two types of AI contribute to co-created value through enhanced functional, emotional, and social customer engagement. By conducting text and regression analyses of a large dataset of hotel reviews, our findings indicate that mechanical intelligence contributes to co-created value by facilitating customers’ functional engagement, while feeling intelligence contributes to co-created value by facilitating customers’ emotional and social engagement. Additionally, our results show that the pathways for co-creating value with AI have been significantly strengthened after the COVID-19 pandemic.

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Dec 15th, 12:00 AM

Artificial Intelligence and Value Co-Creation in Service Frontlines: The Mediating Effect of Customer-Engagement

As artificial intelligence (AI) increasingly penetrates service frontlines, understanding its role in creating business value is crucial for leveraging it strategically. Grounded in service-dominant logic, our study examines how AI reshapes the paradigm of value co-creation in service frontlines, incorporating mechanical intelligence, which addresses service automation, and feeling intelligence, which manages interactions with customers. We hypothesize that these two types of AI contribute to co-created value through enhanced functional, emotional, and social customer engagement. By conducting text and regression analyses of a large dataset of hotel reviews, our findings indicate that mechanical intelligence contributes to co-created value by facilitating customers’ functional engagement, while feeling intelligence contributes to co-created value by facilitating customers’ emotional and social engagement. Additionally, our results show that the pathways for co-creating value with AI have been significantly strengthened after the COVID-19 pandemic.