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Artificial intelligence enabled product–service innovation: past achievements and future directions

Author

Listed:
  • Rimsha Naeem

    (University of Vaasa, School of Management)

  • Marko Kohtamäki

    (University of Vaasa, School of Management)

  • Vinit Parida

    (Luleå University of Technology, Entrepreneurship & Innovation)

Abstract

This study intends to scrutinize the role of Artificial Intelligence (AI) in Product-Service Innovation (PSI). The literature on AI enabled PSI, other related innovation business models, product-service systems, and servitization has grown significantly since 2018; therefore, there is a need to structure the literature in a systematic manner and add to what has been studied thus far. Product-service innovation is used to represent the relevance of achieving innovation in business models dealing with innovation outcomes including artificial intelligence. This study used bibliographic coupling to analyze 159 articles emerging from the fields of computer sciences, engineering, social sciences, decision sciences, and management. This review depicts structures of the literature comprising five (5) clusters, namely, (1) technology adoption and transformational barriers, which depicts the barriers faced during the adoption of AI-enabled technologies and following transformation; (2) data-driven capabilities and innovation, which highlights the data-based capabilities supported through AI and innovation; (3) digitally enabled business model innovation, which explained how AI-enabled business model innovation occurs; (4) smart design changes and sustainability, which reveals the working of AI in product service environments with different design changes and transformations based on sustainability; and (5) sectorial application, which highlights industry examples. Each cluster is comprehensively analyzed based on its contents, including central themes, models, theories, and methodologies, which help to identify the gaps and support suggestions for future research directions.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:rvmgts:v:19:y:2025:i:7:d:10.1007_s11846-024-00757-x
    DOI: 10.1007/s11846-024-00757-x
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    More about this item

    Keywords

    Artificial intelligence; Digitalization and digital transformation; Product-service innovation; Servitization; Product-service system; Business models and strategy;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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