The Integration of Artificial Intelligence in the Luxury Hospitality Industry: A Comparative Analysis Between Italy and Indonesia

Purpose: The study analyses the adoption of the Artificial Intelligence (AI) concept in the luxury hospitality industry in an Italy and Indonesia comparative study. The research is narrowed down to three pairs of cities (Venice and Bali, Rome and Yogyakarta, Milan and Jakarta) to find similarities, contrasts, and common approaches to the adoption of AI. The objective will be to learn how cultural diversities are influencing the guest experience, efficiency of operations, and the competitiveness of technology innovations in the context of the current study. Methodology: The study uses a mixed-method research design, as here the research also combines secondary data (primarily in terms of the scholarly knowledge, industry reports, and online accommodation services) and qualitative analysis (in the form of the content analysis of the reviews left by the guests). Three theoretical models direct the study, namely, the Technology Acceptance Model (TAM), the Diffusion of Innovation (DOI) Theory, and the SERVQUAL Model, which enables the diversity of technological acceptance, innovation diffusion, and service quality in luxurious hospitality to be viewed cohesively. Findings: The findings note that Italian luxury hotels mostly incorporate the so-called invisible types of AI, where the primary aim is to cover discreet, back-of-house services in support of a longstanding human-oriented service culture. Conversely, Indonesian luxury hotels apply more front-end, customer-facing AI devices that are intended to create convenience and efficiency. Such diverging strategies are affected by economic realities, the preparation of infrastructure, the culture of a population to technology, and brand positioning strategies. Implications: Conclusions of the study can help the hotel management, investors, and policymakers in terms of matching the strategies of AI adoption with the particularities of the market, the expectations of the guests, and the specifics of their culture. Both countries have the opportunity to exploit AI in a manner that increases personalization, promotes sustainability and authenticity.