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With the growing integration of artificial intelligence (AI) in the service sector, there is increasing interest in understanding firms’ capabilities to innovate through AI. However, research on AI-powered service innovation capability (AISIC) remains limited by the lack of validated measurement instruments. This study addresses this gap by developing and validating a multidimensional scale to assess AISIC. Based on semi-structured interviews and three multi-source field studies, yielding a total sample of 848 employees, we provide evidence for the scale’s content, factorial, discriminant, convergent, and predictive validity. The final 9-item scale captures AISIC as a higher-order construct comprising three dimensions. Results show that the AISIC scale demonstrates strong psychometric properties and significantly predicts key organizational outcomes. This study offers a practical tool for assessing the extent to which organizations are equipped to drive service innovation through AI, contributing to both theory development and managerial practice in AI-powered service contexts.
Zhou et al. (Thu,) studied this question.