AI-driven business model innovation in service industries: a systematic review

This study offers an integrative understanding of how Artificial Intelligence (AI) drives Business Model Innovation (BMI) in the service industry. Drawing from a systematic review of 113 articles, we identify seven key considerations for integrating AI into service-centric models. Our findings show that AI automates tasks and enhances human-like service interactions, enabling new revenue opportunities. Yet, success hinges on navigating ethical concerns and relational complexities tied to automation and personalization. By examining the interplay between value creation, proposition, and capture, we present a holistic framework that links technological capabilities with customer experience and organizational readiness. Our study provides actionable insights for researchers and practitioners, emphasizing the need to balance efficiency with human-centered values and trust-building. These findings guide service organizations in leveraging AI for sustainable advantage while offering a foundation for future research on the transformative role of AI in service-centric business models.