IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v284y2025ics0925527325000891.html
   My bibliography  Save this article

Artificial Intelligence capabilities in Digital Servitization: Identifying digital opportunities for different service types

Author

Listed:
  • Ayala, Néstor Fabián
  • Rodrigues da Silva, Jassen
  • Cannarozzo Tinoco, Maria Auxiliadora
  • Saccani, Nicola
  • Frank, Alejandro G.

Abstract

The advancement of digital technologies and the pursuit of higher-value solutions have driven companies to expand their portfolios with smart products and digital services, resulting in the innovation known as 'digital servitization.' This concept merges servitization —integrating services with products— and digitization —enhancing operations through digital technologies. While previous research has examined digital servitization and smart technologies, a gap remains in understanding how Artificial Intelligence (AI) specifically supports various types of digital servitization across both back-office and front-office activities. This study addresses this gap by investigating how AI enhances digital servitization through six case studies of companies implementing AI-driven servitized solutions. Adopting a capability theoretical perspective, we analyze the application of AI in both back-office and front-office activities for the delivery of base, intermediate, and advanced services. Our findings reveal that AI's role varies by service type, affecting customer interactions and operational tasks differently. We present a theoretical framework with five propositions that elucidate how AI capabilities enhance digital servitization. This framework gives scholars a refined understanding of AI's roles beyond the generalized black box approach and offers practitioners practical insights on leveraging AI for digital transformation.

Suggested Citation

  • Ayala, Néstor Fabián & Rodrigues da Silva, Jassen & Cannarozzo Tinoco, Maria Auxiliadora & Saccani, Nicola & Frank, Alejandro G., 2025. "Artificial Intelligence capabilities in Digital Servitization: Identifying digital opportunities for different service types," International Journal of Production Economics, Elsevier, vol. 284(C).
    • Handle: RePEc:eee:proeco:v:284:y:2025:i:c:s0925527325000891
    DOI: 10.1016/j.ijpe.2025.109604
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527325000891
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2025.109604?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Marcon, Érico & Le Dain, Marie-Anne & Frank, Alejandro G., 2022. "Designing business models for Industry 4.0 technologies provision: Changes in business dimensions through digital transformation," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    2. Dwivedi, Yogesh K. & Hughes, Laurie & Ismagilova, Elvira & Aarts, Gert & Coombs, Crispin & Crick, Tom & Duan, Yanqing & Dwivedi, Rohita & Edwards, John & Eirug, Aled & Galanos, Vassilis & Ilavarasan, , 2021. "Artificial Intelligence (AI): Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy," International Journal of Information Management, Elsevier, vol. 57(C).
    3. Cenamor, J. & Rönnberg Sjödin, D. & Parida, V., 2017. "Adopting a platform approach in servitization: Leveraging the value of digitalization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 54-65.
    4. Madanaguli, Arun & Sjödin, David & Parida, Vinit & Mikalef, Patrick, 2024. "Artificial intelligence capabilities for circular business models: Research synthesis and future agenda," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    5. Sjödin, David & Parida, Vinit & Kohtamäki, Marko, 2023. "Artificial intelligence enabling circular business model innovation in digital servitization: Conceptualizing dynamic capabilities, AI capacities, business models and effects," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    6. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    7. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.
    8. Richard B. Chase, 1981. "The Customer Contact Approach to Services: Theoretical Bases and Practical Extensions," Operations Research, INFORMS, vol. 29(4), pages 698-706, August.
    9. Ravil I. Mukhamediev & Yelena Popova & Yan Kuchin & Elena Zaitseva & Almas Kalimoldayev & Adilkhan Symagulov & Vitaly Levashenko & Farida Abdoldina & Viktors Gopejenko & Kirill Yakunin & Elena Muhamed, 2022. "Review of Artificial Intelligence and Machine Learning Technologies: Classification, Restrictions, Opportunities and Challenges," Mathematics, MDPI, vol. 10(15), pages 1-25, July.
    10. Kindström, Daniel & Kowalkowski, Christian & Sandberg, Erik, 2013. "Enabling service innovation: A dynamic capabilities approach," Journal of Business Research, Elsevier, vol. 66(8), pages 1063-1073.
    11. David J. Collis, 1994. "Research Note: How Valuable are Organizational Capabilities?," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 143-152, December.
    12. Chen, Liping & Dai, Yishu & Ren, Fei & Dong, Xiaoying, 2023. "Data-driven digital capabilities enable servitization strategy——From service supporting the product to service supporting the client," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    13. Hullova, Dusana & Laczko, Pavel & Frishammar, Johan, 2019. "Independent distributors in servitization: An assessment of key internal and ecosystem-related problems," Journal of Business Research, Elsevier, vol. 104(C), pages 422-437.
    14. Meindl, Benjamin & Ayala, Néstor Fabián & Mendonça, Joana & Frank, Alejandro G., 2021. "The four smarts of Industry 4.0: Evolution of ten years of research and future perspectives," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    15. Paiola, Marco & Saccani, Nicola & Perona, Marco & Gebauer, Heiko, 2013. "Moving from products to solutions: Strategic approaches for developing capabilities," European Management Journal, Elsevier, vol. 31(4), pages 390-409.
    16. Fosso Wamba, Samuel & Queiroz, Maciel M. & Chiappetta Jabbour, Charbel Jose & Shi, Chunming (Victor), 2023. "Are both generative AI and ChatGPT game changers for 21st-Century operations and supply chain excellence?," International Journal of Production Economics, Elsevier, vol. 265(C).
    17. Christian Janiesch & Patrick Zschech & Kai Heinrich, 2021. "Machine learning and deep learning," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(3), pages 685-695, September.
    18. Trocin, Cristina & Hovland, Ingrid Våge & Mikalef, Patrick & Dremel, Christian, 2021. "How Artificial Intelligence affords digital innovation: A cross-case analysis of Scandinavian companies," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    19. Bernardo Nicoletti & Andrea Appolloni, 2023. "Artificial Intelligence for the Management of Servitization 5.0," Sustainability, MDPI, vol. 15(14), pages 1-13, July.
    20. Schiavone, Francesco & Leone, Daniele & Caporuscio, Andrea & Lan, Sai, 2022. "Digital servitization and new sustainable configurations of manufacturing systems," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    21. Sjödin, David & Parida, Vinit & Palmié, Maximilian & Wincent, Joakim, 2021. "How AI capabilities enable business model innovation: Scaling AI through co-evolutionary processes and feedback loops," Journal of Business Research, Elsevier, vol. 134(C), pages 574-587.
    22. Érico Marcon & Marie-Anne Le Dain & Alejandro Frank, 2022. "Designing business models for Industry 4.0 technologies provision: Changes in business dimensions through digital transformation," Post-Print hal-04811456, HAL.
    23. Wolfgang Ulaga & Werner Reinartz, 2011. "Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully," Post-Print hal-00642039, HAL.
    24. Benitez, Guilherme Brittes & Ghezzi, Antonio & Frank, Alejandro G., 2023. "When technologies become Industry 4.0 platforms: Defining the role of digital technologies through a boundary-spanning perspective," International Journal of Production Economics, Elsevier, vol. 260(C).
    25. Marco Ardolino & Mario Rapaccini & Nicola Saccani & Paolo Gaiardelli & Giovanni Crespi & Carlo Ruggeri, 2018. "The role of digital technologies for the service transformation of industrial companies," International Journal of Production Research, Taylor & Francis Journals, vol. 56(6), pages 2116-2132, March.
    26. Lucas Santos Dalenogare & Marie-Anne Le Dain & Néstor Ayala & Giuditta Pezzotta & Alejandro Frank, 2023. "Building digital servitization ecosystems: An analysis of inter-firm collaboration types and social exchange mechanisms among actors," Post-Print hal-04811390, HAL.
    27. Abou-Foul, Mohamad & Ruiz-Alba, Jose L. & López-Tenorio, Pablo J., 2023. "The impact of artificial intelligence capabilities on servitization: The moderating role of absorptive capacity-A dynamic capabilities perspective," Journal of Business Research, Elsevier, vol. 157(C).
    28. Saccani, N. & Johansson, P. & Perona, M., 2007. "Configuring the after-sales service supply chain: A multiple case study," International Journal of Production Economics, Elsevier, vol. 110(1-2), pages 52-69, October.
    29. Frank, Alejandro G. & Mendes, Glauco H.S. & Ayala, Néstor F. & Ghezzi, Antonio, 2019. "Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 341-351.
    30. Dalenogare, Lucas Santos & Le Dain, Marie-Anne & Ayala, Néstor F. & Pezzotta, Giuditta & Frank, Alejandro G., 2023. "Building digital servitization ecosystems: An analysis of inter-firm collaboration types and social exchange mechanisms among actors," Technovation, Elsevier, vol. 124(C).
    31. Thomas H. Davenport, 2018. "From analytics to artificial intelligence," Journal of Business Analytics, Taylor & Francis Journals, vol. 1(2), pages 73-80, July.
    32. Chirumalla, Koteshwar & Leoni, Luna & Oghazi, Pejvak, 2023. "Moving from servitization to digital servitization: Identifying the required dynamic capabilities and related microfoundations to facilitate the transition," Journal of Business Research, Elsevier, vol. 158(C).
    33. Metters, Richard & Vargas, Vicente, 2000. "Organizing work in service firms," Business Horizons, Elsevier, vol. 43(4), pages 23-32.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Filosa, Clara & Jovanovic, Marin & Agostini, Lara & Nosella, Anna, 2025. "Pivoting B2B platform business models: From platform experimentation to multi-platform integration to ecosystem envelopment," International Journal of Production Economics, Elsevier, vol. 280(C).
    2. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    3. Chen, Liping & Dai, Yishu & Ren, Fei & Dong, Xiaoying, 2023. "Data-driven digital capabilities enable servitization strategy——From service supporting the product to service supporting the client," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    4. Chirumalla, Koteshwar & Leoni, Luna & Oghazi, Pejvak, 2023. "Moving from servitization to digital servitization: Identifying the required dynamic capabilities and related microfoundations to facilitate the transition," Journal of Business Research, Elsevier, vol. 158(C).
    5. Canboy, Başak & Khlif, Wafa, 2025. "Beyond efficiency: Revisiting AI platforms, servitization and power relations from a critical perspective," International Journal of Production Economics, Elsevier, vol. 282(C).
    6. Khanra, Sayantan & Dhir, Amandeep & Parida, Vinit & Kohtamäki, Marko, 2021. "Servitization research: A review and bibliometric analysis of past achievements and future promises," Journal of Business Research, Elsevier, vol. 131(C), pages 151-166.
    7. Rimsha Naeem & Marko Kohtamäki & Vinit Parida, 2025. "Artificial intelligence enabled product–service innovation: past achievements and future directions," Review of Managerial Science, Springer, vol. 19(7), pages 2149-2192, July.
    8. Münch, Christopher & Marx, Emanuel & Benz, Lukas & Hartmann, Evi & Matzner, Martin, 2022. "Capabilities of digital servitization: Evidence from the socio-technical systems theory," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    9. Shen, Lei & Sun, Wanqin & Parida, Vinit, 2023. "Consolidating digital servitization research: A systematic review, integrative framework, and future research directions," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    10. Tian, Jiamian & Coreynen, Wim & Matthyssens, Paul & Shen, Lei, 2022. "Platform-based servitization and business model adaptation by established manufacturers," Technovation, Elsevier, vol. 118(C).
    11. Jovanovic, Marin & Raja, Jawwad Z. & Visnjic, Ivanka & Wiengarten, Frank, 2019. "Paths to service capability development for servitization: Examining an internal service ecosystem," Journal of Business Research, Elsevier, vol. 104(C), pages 472-485.
    12. Lee, Min-Jae & Kim, Yanghee & Roh, Taewoo, 2024. "Exploring the role of digital servitization for green innovation: Absorptive capacity, transformative capacity, and environmental strategy," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    13. Jia, Yibo & Cui, Li & Su, Jingqin & Wu, Lin & Akter, Shahriar & Kumar, Ajay, 2024. "Digital servitization in digital enterprise: Leveraging digital platform capabilities to unlock data value," International Journal of Production Economics, Elsevier, vol. 278(C).
    14. Leminen, Seppo & Rajahonka, Mervi & Wendelin, Robert & Westerlund, Mika & Nyström, Anna-Greta, 2022. "Autonomous vehicle solutions and their digital servitization business models," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    15. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    16. Kohtamäki, Marko & Parida, Vinit & Patel, Pankaj C. & Gebauer, Heiko, 2020. "The relationship between digitalization and servitization: The role of servitization in capturing the financial potential of digitalization," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    17. Bustinza, Oscar F. & Opazo-Basaez, Marco & Tarba, Shlomo, 2022. "Exploring the interplay between Smart Manufacturing and KIBS firms in configuring product-service innovation performance," Technovation, Elsevier, vol. 118(C).
    18. Mosch, Philipp & Schweikl, Stefan & Obermaier, Robert, 2021. "Trapped in the supply chain? Digital servitization strategies and power relations in the case of an industrial technology supplier," International Journal of Production Economics, Elsevier, vol. 236(C).
    19. Struwe, Sascha & Slepniov, Dmitrij, 2023. "Unlocking digital servitization: A conceptualization of value co-creation capabilities," Journal of Business Research, Elsevier, vol. 160(C).
    20. Chowdhury, Soumyadeb & Ren, Shuang & Richey, Robert Glenn, 2025. "Leveraging artificial intelligence to facilitate green servitization: Resource orchestration and Re-institutionalization perspectives," International Journal of Production Economics, Elsevier, vol. 281(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:284:y:2025:i:c:s0925527325000891. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.