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.