This research examines how generative artificial intelligence (GenAI) acts as an agentic force that transforms service systems through its interaction with human actors. By moving beyond the view of technology as a passive tool, the authors introduce the concept of human–GenAI hybrids that co-create hybrid intelligence and alter traditional task delegation.
The paper identifies two unique GenAI capabilities, autoreflexivity and autoreformation, which allow these hybrids to recognise and intentionally reshape the institutional arrangements governing service exchanges.
These dynamics influence the mechanisms of transformation, leading to more frequent and rapid phase transitions within service ecosystems. Ultimately, the study challenges human-centric assumptions in service design by positioning GenAI as an active contributor to systemic change and market evolution.