I think in the same line of @valpolushkin though I have not used AutoMapper till now.
See my answer in WCF Message & Data Contract, DTO, domain model, and shared assemblies for an example where the use of Business Entities as Data Contract can cause breaking changes.
I think, it is a very bad practice to use Business Objects as DataContracts. The Service need to be autonomous. The service may be used by clients that has / has not got Lax Versioning.
Refer Service Versioning.
It is easy to mistakenly believe that adding a new member will not break existing clients. If you are unsure that all clients can handle lax versioning, the recommendation is to use the strict versioning guidelines and treat data contracts as immutable.
Also, refer MSDN - Service Layer Guidelines
Design transformation objects that translate between business entities and data contracts.