Abstract

ABSTRACT Artificial intelligence (AI) continues to transform the hospitality industry. While adopting AI can lead to employee anxiety, less is known about how these affected employees can benefit and become more competitive. This study advances the challenge-hindrance framework in the AI context to investigate how employees respond to the advances of these technologies and the resulting changes in their competitive productivity. Data collected from 235 employees in the hospitality industry through a two-wave method was analysed using PLS-SEM. Findings indicate that although the advancement of AI leads to workplace anxiety, such innovation can trigger job crafting through the conservation of resources theory. These effects can positively impact competitiveness and productivity, particularly for employees who find their work meaningful. This study extends the challenge-hindrance framework and offers guidance for the hospitality industry to better integrate AI for service professionals to become more competitive and productive.

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