International Journal of Social Science Research (IJSSR)

Enhancing Economic Insights into Smart Hospitality: AI, Service-Dominant Logic, and Sustainability Insights vis PLS-SEM

The rising application of artificial intelligence (AI) is changing service provision in the hospitality sector, but there is a paucity of empirical studies that clarify the impacts that AI adoption has on the perception of service quality and sustainability by the guests. Based on Service-Dominant Logic, the paper will explore the implications of AI integration on how guests rate the quality of services and sustainability practices, the mediating variable is the engagement of the guests, and the moderating variable is the level of technological literacy. The respondents were hotel customers who had experience with AI-enabled services, and structural equation modelling with partial least squares (SEM-PLS) was employed in the analysis. The findings indicate that the integration of AI leads to substantial guest engagement, which, in its turn, gives a strong impact on the perceptions of service quality and sustainability. Although AI also has direct positive impacts on such results, guest engagement proves the main channel by which AI has value-generating impacts. The results also show that technological literacy moderates its implications in a small way, which implies that AI-enabled services can bring value to various customer segments. This research paper is relevant to the hospitality and sustainability literature in that it shows AI-driven value creation is essentially people-oriented and provides a practical perspective in the design of AI-enabled services to enhance service quality and sustainable experiences.