Artificial Intelligence (AI) and Cognitive Apportionment for Service Flexibility

Artificial Intelligence (AI) is evolving from a technology to an enabler of service processes and delivery. With the increasing importance of AI as a service interface, integrating and aligning AI technology to effective service delivery is a critical challenge. In this study, we theorize cognitive apportionment, consisting of AI-human service synchronization and AI-system service consistency attributes, as a dynamic capability that could address issues arising from shifting decision processes. We argue that integrating and balancing human-AI-system dialogue mechanisms while rendering services is a key to leverage and achieve desired service outcomes. We develop a set of propositions encompassing the mediating effect of cognitive apportionment and the moderating role of AI-enabled service portfolio to influence service flexibility. Preliminary analysis with 80 respondents supports our propositions. This research offers new insights into the underlying mechanisms of how AI can create value.