Reconfiguring Digital Service Ecosystems through Algorithmic Governance: A Mixed-Method Study of AI-Driven Tourism

The meeting point of AI and experience economy is pushing a big move from single line service delivery to networked digital service ecosystems.Resource constrained 2nd tier cities, is it about digital only?Rather, it entails creating an algorithmic governance mechanism that orchestrates value co-production.This study is on how AI powered algorithmic governance changes digital service systems in Luzhou, Sichuan.Through combining TOE framework with Service-Dominant Logic (SDL), the study constructs a "Smart Cultural Immersion" service model.Using both semi-structured stakeholder interviews and analysis of sentiment in big data, the study finds three key pathways of system reconfiguration: adding to what we know (cognitive augmentation), making changes that work better (operational improvement), and making us feel more connected (emotional engagement).From the findings we can see that Luzhou had built the data acquisition layer, however, it is facing a structural bottleneck in the decision and service orchestration layer.Paper ends with a strategic framework for the informatics enabled governance, which provides a roadmap for the 2nd tier cities to close the digital gap by means of adaptive service ecosystems.