Generative AI and the human touch: unpacking well-being in SME services

Purpose This study aims to examine how customers perceive and engage with generative artificial intelligence (GenAI)-enabled services provided by small and medium-sized enterprises (SMEs), with a particular focus on value co-creation and well-being outcomes. While prior studies have mainly investigated GenAI adoption from the firm perspective, this research shifts attention to customer-level psychological and experiential mechanisms in an emerging economy context. Design/methodology/approach Drawing on service-dominant logic and Sustainable Development Goal 3, the study adopts a quantitative approach. Data were collected from 180 Vietnamese consumers, predominantly educated youths aged 18–24, who had prior experience with GenAI-powered services offered by SMEs. Partial least squares structural equation modeling was used to test the proposed hypotheses. Findings The results indicate that perceived knowledge about GenAI and perceived marketplace influence are positively associated with customers’ value co-creation behavior. Value co-creation is positively associated with both value-in-use and emotional well-being. In addition, value-in-use is positively associated with perceptions of social well-being, whereas emotional well-being is not significantly associated with social well-being. Originality/value This study extends GenAI research by moving beyond firm-level adoption to examine customer-centric outcomes in SME service contexts in an emerging economy. It highlights perceived knowledge and marketplace influence as critical antecedents of value co-creation and demonstrates how AI-enabled services contribute to social value primarily through functional value-in-use rather than emotional pathways.