Purpose This research advances theoretical insights in AI-enabled service design and transformative service, while offering practical guidelines in developing GenAI tools to empower older adults and support positive aging. Design/methodology/approach Three progressive scenario-based experimental design studies are conducted to investigate (1) whether AI-enabled self-learning service outperforms among older adults (Study 1), (2) what features contribute to increased service engagement (Studies 2 and 3) and (3) how service design elements enhance transformative service outcomes (Studies 1, 2 and 3). Findings This research finds the dual impact of AI-enabled transformative service on older adults' behavioral engagement (service usage and referral intentions) and psychological well-being (purpose of life and satisfaction with life) with these effects mediated by perceptions of personal growth and social connectedness respectively. Practical implications The research findings emphasize the value of embedding emotionally intelligent and socially engaging features in AI-enabled service to maximize customer lifetime value and well-being among older adults. Service providers are suggested to invest in AI designs that go beyond functionality and incorporate personalized support and social connection cues to better serve the psychological needs of older adults and foster positive aging. Originality/value This research offers theoretical advancements in multiple ways. It confirms GenAI's role as a transformative service provider, validates digital pathways to positive aging and empirically tests two critical psychological well-being mechanisms – personal growth and social connectedness – as mediators linking AI-enabled transformative service to an enhanced senses of life purpose and life satisfaction.
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