This chapter examines how artificial intelligence is reshaping high-value service delivery such as healthcare, finance, and the law—fields where mistakes are costly and judgment is paramount. AI promises faster, cheaper, and sometimes sharper decisions. But handing the reins entirely to machines is a risky gambit. Drawing on fresh empirical and theoretical research, the chapter shows that AI works best not as a replacement but as a collaborator in these service systems. Machines detect patterns; humans grasp context and frame problems. Together, they can outperform either alone—at least in theory. In practice, things get messier. Collaboration can introduce new inefficiencies, obscure responsibility, and tempt decision-makers to hide behind the algorithm when things go wrong. Before unleashing AI, organizations should keep workloads manageable, set smart incentives, and invest in human problem-solving skills. Otherwise, introducing AI may backfire.