User interactions are key components by which AI and algorithmic processing shape personalization. Algorithms require user interactions to function. Emerging technologies are unlocking new potential for public management, but they require understanding the specific functional impact of technologies on the service experience. This research applies lessons from interactive computing to understand how users and algorithms shape each other. Beyond just being deterministic black boxes, artificial intelligence emerged as having highly interactive components, and this has implications for personalization in e-services, and therefore has implications for public value generation.