Product-Service System (PSS) development prioritizes the technical aspects of implementing Artificial Intelligence (AI), overlooking the strategic rationale behind its adoption. This paper investigates the impact of AI on value co-creation within industrial contexts by analyzing successful AI applications in PSS development across diverse domains like industrial systems engineering and healthcare technology. Through a multiple case study approach, this paper aims to explore the strategic motivations for using AI and its influence on the co-creation process. The analysis reveals several key benefits of AI adoption. Firstly, it fosters collaborative and iterative development, empowering both internal teams and external stakeholders to actively participate in value co-creation. Secondly, AI helps uncover novel value propositions that might remain hidden through traditional methods thus boosting the value co-creation. Finally, AI acts as a catalyst for building dynamic knowledge ecosystems. By facilitating data-driven insights and collaboration, AI enables continuous learning and adoption within the co-creation process.