New Frontiers for Value Co-Creation in the Entertainment Industry

This paper investigates the evolving role of Artificial Intelligence (AI) in reshaping value co-creation within the entertainment industry. Drawing on the theoretical foundations of Service-Dominant (S-D) logic, customer engagement, and socio-technical frameworks, the study explores how AI integration enhances or hinders customer participation in cocreation processes. Through a qualitative analysis it examines real-world applications of AI, such as personalization engines, generative tools, and predictive analytics. The findings reveal a dual-track model of value co-creation: (1) Human-Machine Co-creation, where AI augments user experience through personalization and immersion; and (2) Customer-Company Co-creation, rooted in emotional bonding and symbolic participation. While AI can deepen engagement and streamline creative processes, intrusive implementations risk alienating users and eroding brand authenticity. Case studies highlight that customer participation thrives when AI is adopted transparently and respectfully to support human creativity. Conversely, overreliance on AI in emotionally or culturally significant domains can damage trust and weaken the brand-fan relationship. The study concludes that effective AI deployment requires ethical design, narrative sensitivity, and strategic alignment with human values. These insights offer practical guidance for marketers, policymakers, and researchers navigating AI-enabled co-creation in the digital economy.