Abstract
With the growing prevalence of artificial intelligence (AI) technologies in the tourism and hospitality industry, the phenomenon of AI service failure emerges, which merits empirical attention. Via six scenario-based experiments, this study verifies why and how humorous responses from AI agents affect customers' tolerance of AI service failure. Findings confirm the positive impact of humorous response on customer tolerance. Results further reveal the mediating effects of perceived warmth and perceived competence along with boundaries (customer inoculation and time pressure) of the humor effect. These findings enhance knowledge of AI service failure and recovery by delineating the recovery effect of AI agents' humorous responses. This research also offers tourism companies a new tool, humorous response, for resolving AI service failures.
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