A new competitive edge: crafting a service climate that facilitates optimal human–AI collaboration

Purpose: Capable service employees are increasingly scarce and costly. Many organizations opt to partially replace, support or augment human employees with AI systems. This study builds a framework to help managers map and understand the challenges of crafting a service climate that fosters synergies between AI and human employees, where customers require value-added, personalized and excellent service. Design/methodology/approach: This conceptual article identifies barriers and facilitators of building a service climate for organizations using both human and AI-based employees through an eclectic review of relevant literature. Findings: A conceptual framework is built, and a future research agenda is brought forth. Research limitations/implications: By identifying barriers and facilitators for AI–human synergies in service settings, this article clarifies how AI can be made to complement human employees, especially in delivering personalized, value-added services, while also highlighting knowledge gaps. Practical implications: This study provides a practical framework for integrating AI into the workforce. It offers insights into addressing challenges in creating a service climate that combines human and AI capabilities to maintain service excellence. Identifying key barriers and facilitators, the framework guides managers to improve efficiency and customer satisfaction in a rapidly changing service landscape. Social implications: This research offers insights on incorporating AI to address labor shortages while maintaining high-quality, personalized service. It provides a pathway to improving service experiences, especially in sectors facing staffing challenges from an aging population. Originality/value: This research builds on Bowen and Schneider’s (2014) seminal service climate framework to account for a mix of human and AI-based employees.