Recent research on service logic has significantly advanced our understanding of AI’s role in service innovation. AI-based technologies have the potential to connect a broader range of actors and resources by collecting real-time data, automating tasks, facilitating decision-making, and creating new opportunities for innovation. However, the specific focus on service innovation and its underlying processes remains unclear. This chapter addresses this gap by adopting a practice theory perspective and exploring how AI is utilized to advance service innovation practices. In doing so, we conceptualize two new types of service innovation practices: automating intelligence practices and augmenting intelligence practices. These practices represent promising avenues for expanding the understanding of service innovation and the potentiality of AI, enriching the scholarly discourse in service research.