This research examines how **generative artificial intelligence (GenAI)** acts as an agentic force that transforms **service systems** through its interaction with human actors. By moving beyond the view of technology as a passive tool, the authors introduce the concept of **human–GenAI hybrids** that co-create **hybrid intelligence** and alter traditional task delegation.
The paper identifies two unique GenAI capabilities, **autoreflexivity** and **autoreformation**, which allow these hybrids to recognise and intentionally reshape the **institutional arrangements** governing service exchanges.
These dynamics influence the **mechanisms of transformation**, leading to more frequent and rapid **phase transitions** within service ecosystems. Ultimately, the study challenges **human-centric assumptions** in service design by positioning GenAI as an active contributor to systemic change and market evolution.
