In this longitudinal action design research study, researchers accompanied a small service provider in the hospitality sector navigating AI-driven transformation. Over five distinct phases, the company progressively integrated AI tools – from sentiment analysis to generative language models – into its core processes, reshaping workflows and its business model. Drawing on the framework of dynamic capabilities, the study illustrates how the organization’s abilities to transform its business model enabled it to apply new technology while maintaining service quality. The paper abstracts the insights into five design principles for implementing GenAI in customer feedback management, emphasizing hybrid human-AI collaboration, robust quality control, and modular service structures.
Katsiuba et al. (Fri,) studied this question.