Artificial intelligence (AI) algorithms have been continuously adopted in businesses, such as retailing, hospitality, and tourism. The current chapter aims first to provide a conceptualization of evolution of AI. Second, it gives an overview of AI in business and finally points out examples of applications of AI in retailing, hospitality, and tourism. Third, the chapter offers suggestions for further research. This chapter is devoted to researchers and practitioners. The audience will benefit from an overview of AI meaning and potential research to be developed and also benefit from examples of other business that already employ such AI algorithms.
TopIntroduction
Over the years, technology has been increasingly taking over our lives in a transparent but, yet tremendous way. Retail, hospitality, and tourism have started to adopt artificial intelligence (AI) to improve customers satisfaction and enhance experiences with services and products. Additionally, the adoption of AI is also transforming the industries by considering the importance of productivity and how it can optimize processes and operations by making them more efficient and effective (e.g., Russell & Norvig, 2016; Loureiro, Guerreiro, & Tussyadiah, 2020; Romero, Ruiz-Equihua, Loureiro, & Casaló, 2021). However, there is still some hesitation regarding the future of this technology in the market and how to fully embrace it.
The number of companies and startups that are investing in AI keeps growing rapidly. It is a highly discussed topic both by managers and researchers. Nonetheless, AI and data will only have a significant and potential impact when its use is applied to the right case. The technological advancements have resulted in structural shifts and strategies within companies and businesses from the retail, hospitality, and tourism industries, that are increasingly operating more in a knowledge-based environment due to the information the technology is able to provide (e.g., Rust & Huang, 2014; Rust, 2020; Loureiro, Japutra, Molinillo, & Bilro, 2021). Through the application of software and algorithms, AI can interpret data and deliver more detailed knowledge regarding consumers’ profiles, allowing managers to produce a more personalized and valuable experience. Based on the above considerations, the current chapter aims to (1) provide a conceptualization of evolution of AI, (2) give an overview of AI in business and finally points out examples of applications of AI in retailing, hospitality, and tourism and (3) provide suggestions for further research