Development of the artificial intelligence powered service innovation capability scale

With the growing integration of artificial intelligence (AI) in the service sector, there is increasing interest in understanding firms’ capabilities to innovate through AI. However, research on AI-powered service innovation capability (AISIC) remains limited by the lack of validated measurement instruments. This study addresses this gap by developing and validating a multidimensional scale to assess AISIC. Based on semi-structured interviews and three multi-source field studies, yielding a total sample of 848 employees, we provide evidence for the scale’s content, factorial, discriminant, convergent, and predictive validity. The final 9-item scale captures AISIC as a higher-order construct comprising three dimensions. Results show that the AISIC scale demonstrates strong psychometric properties and significantly predicts key organizational outcomes. This study offers a practical tool for assessing the extent to which organizations are equipped to drive service innovation through AI, contributing to both theory development and managerial practice in AI-powered service contexts.