Artificial Intelligence (AI) is reshaping service marketing by transforming customer–firm interactions into intelligent, data-driven, and personalized engagements. While existing research primarily emphasizes operational efficiency and automation benefits, limited attention has been paid to AI’s theoretical role in value co-creation within service ecosystems. Grounded in Service-Dominant Logic (SDL), Relationship Marketing Theory, and Technology Acceptance Theory (TAM), this conceptual paper develops an integrative framework explaining how AI capabilities facilitate value co-creation. The study conceptualizes AI as an operant resource that enhances interactive intelligence, predictive analytics, personalization capability, and adaptive learning, thereby strengthening customer engagement and relational outcomes. The paper proposes a structured set of theoretical propositions linking AI capabilities to customer engagement, co-creation outcomes, relational performance, and firm performance. The study contributes to service marketing literature by extending SDL into AI-mediated service ecosystems and provides managerial insights for designing AI-enabled relational strategies. Directions for empirical validation and future research are also discussed.