I assume no. There will always be a part of the experience that AI won't yet be ready to design well or where it will be too expensive to do it via AI.

In fact, I believe that the more the world will be automated and run through AI stuff, the more people will love experiences they know have been designed by humans. Even if those experiences maybe aren't more efficient or more economical.

We are already in a world where we can mass produce goods of high quality, but still many people love to buy stuff that was made by artisans. Even if it's more expensive, harder to get, and sometimes the quality is even "worse" than the mass-produced product.

Why? Because these people want something that has a story. They want to support another human. They don't want to interact with something created by faceless automation.

My hypothesis is that yes, many parts of the job of the Service Designer will benefit from AI. But that on the other side, many customers will seek experiences that are made by humans for humans.