Abstract
AI–driven personalisation is central to digital service systems but raises ethical and justice-related risks to autonomy, fairness, and collective well-being in data-intensive contexts. This chapter develops an integrated ethical service systems framework that explains AI-driven personalisation as an outcome of interconnected governance, system design, and user experience layers. Drawing on sociotechnical and institutional perspectives, the framework shows how ethical intent is embedded into algorithmic systems through regulation by design and multi-level management. The framework is illustrated through a Māori-grounded application of Microsoft Copilot, demonstrating how Indigenous principles of collective responsibility, data sovereignty, and respect for knowledge inform AI governance, system design, and personalised service interactions. By integrating Indigenous ethics across governance, systems, and experiences, this chapter advances ethical service systems theory and offers guidance for organisations and policymakers balancing innovation with justice and legitimacy.