Managerial practices shaping the transformation towards artificial intelligence-enabled product–service systems

Abstract

This study explores the management of the emergence of artificial intelligence (AI)-enabled product–service systems (PSS) that facilitate a manufacturer's transition toward autonomous solutions. We use a case study involving a leading manufacturer actively developing autonomous and integrated solutions while incorporating AI into product–service systems (PSS) from 2015 to 2022. The study contributes to the digital servitization literature in two ways. First, the study merges AI into product–service systems through a multi-layered path model, which includes layers such as AI-enabled PSS, AI-related PSS technologies, and AI-related PSS ecosystem partnerships. Second, the study identifies managerial practices of strategizing, evangelizing, and routinizing to create AI-enabled PSS, providing guidance for managers planning to merge AI into their product–service systems. The study outlines a research agenda for future AI-enabled PSS. Additionally, it gives managers a framework to understand how to pursue the transition journey.