Artificial intelligence (AI) applications are swiftly proliferating and enjoying extensive global utilization, constituting a subject of discourse across various academic fields within scholarly literature. The purpose of this research is to explore the transformative impact of artificial intelligence (AI) integration on the tourism and hospitality sector. Moreover, the study aims to examine the benefits and potential challenges associated with the incorporation of AI in this industry. The research employs a narrative synthesis methodology, which is particularly suitable for fields where qualitative data and textual information are of great importance. This methodology involves synthesizing and analyzing existing literature, research, and textual sources to create a comprehensive understanding of the subject. It provides a qualitative overview of the topic, enabling the researchers to derive insights from various sources and present a coherent narrative. The research identifies several impactful areas where AI has transformed the hotel industry. It highlights that AI can serve as a powerful tool for enhancing various aspects of hotel operations and management. These areas include personalization, revenue management, data analysis, employee management, and competitive advantage. While AI offers these significant benefits, the research also identifies challenges that need consideration. The research highlights the need for industry stakeholders to strike a balance between harnessing AI's potential and addressing its associated challenges to ensure a successful transition towards an AI-powered future.