Examining the duality of Immersive Artificial Intelligence AI in the Luxury Hospitality Sector : Understanding How Immersive AI Influences Consumer distinction and Adds Value to Luxury Experiences

Abstract

This study examines the duality of immersive artificial intelligence AI in the luxury hospitality sector,focusing on how immersive AI influences consumer distinction and adds value to luxury experiences.Through a comprehensive review of literature, key findings and insights are synthesized to provide a holistic understanding of the opportunities and challenges associated with the integration of immersive AI technologies, including virtual reality VR, augmented reality AR, and personalized AI assistants, in luxury hospitality. The analysis reveals that immersive AI holds significant promise for luxury brands to enhance guest engagement, satisfaction, and loyalty by offering personalized, memorable experiences that resonate with discerning consumers. However, the adoption and implementation of immersive AI also present challenges, including concerns around authenticity, human connection, data privacy, security, and ethical implications. By prioritizing authenticity, transparency, innovation, sustainability, diversity, data driven optimization, and customer centricity, luxury brands can unlock the full potential of immersive AI to create truly differentiated and memorable experiences for discerning consumers. This study highlights the need for further research and practice to address gaps and limitations in understanding the long term impacts of immersive AI, factors influencing guest acceptance and adoption, emerging trends and challenges, ethical considerations, economic viability, operational challenges, and the impact on the employee experience. By addressing these gaps, researchers and practitioners can advance knowledge and inform strategies for effective and responsible implementation of immersive AI in luxury hospitality, thereby shaping the future of luxury experiences in the digital age.