Transitioning to AI-enabled Generative Cyber-Physical Servicescape

Customers of various services have ever-changing expectations from service providers, placing critical pressure on providers to develop a synchronous, quick system that positively impacts user experiences while ensuring that providers are efficient, like ridesharing, home care, vehicle repairing, etc. To serve customers seamlessly and offer enhanced experience, businesses are turning to generative AI. Hence, this study conceptualizes an AI-enabled generative Cyber-Physical Servicescape (CPSC) structure and how different elements are related. This study adopted a grounded theory approach and used semi-structured interviews to collect data from 30 industry experts. First-order concepts, second-order themes, and aggregate dimensions are developed based on the interview data. This analysis further led to the emergence of four core elements of an AI-enabled generative CPSC: user interface, cybercore, servicescape design, and AI-based CPS servicescape. This study contributes to theory by developing four propositions and a framework that indicates the relationship between the four emerging elements of an AI-enabled generative CPSC. This study offers implications for theory and practice that can be considered when developing cyber-physical service systems in services and employing generative AI for best customer service.