Research in human-computer interactions (HCI) has been dedicated to finding ways to improve the relationship between user and technology through various human-centered approaches. One promising approach is a human-in-the-loop (HITL) method that gives users a role in the development or implementation of the system. We believe that such a method elicits psychological ownership, which is experienced when people perceive “ownership” of an object or target, through self-investment, intimate knowledge, and/or perceived control of the target [1]. We hypothesized through our HITL study where participants used an AI they trained for navigation versus a pre-trained AI, users would experience increased psychological ownership and positive attitudes towards the system they trained. Data was collected online from 140 participants who trained an AI by providing trial-by-trial feedback. After training, users interacted with the AI system they trained, as well as with a pre-trained AI system, in an immersive virtual setting. Results indicate that psychological ownership can be an effect of an HITL approach that drives self-reported trust and satisfaction. Further, psychological ownership can be cultivated in an AI system if the user feels in control, self-invested, and knowledgeable about the AI system, even with no prior use and regardless of AI literacy. HITL approaches may result in a bidirectional adaptation that benefits both the user and system. Users who experience psychological ownership through HITL approaches may be more enabled to creatively use and adapt to novel technologies, operating these technologies effectively across different situations.