This study explores the impact of artificial intelligence (AI) on the growth and competitiveness of regional tourism and hospitality destinations. AI's application has both positive and negative effects on sustainable tourism. On the positive side, AI enhances accessibility to tourist sites, provides detailed information about attractions, simplifies understanding of costs and amenities, boosts local economies, and increases federal income. A notable downside is the replacement of human workers by machine learning technologies, which may necessitate remedial measures such as training. This review examines AI's foundational IT principles, current applications, and systems in the industry, focusing on the hotel sector. It concludes with an overview of AI’s challenges in this field, proposes a research agenda, and suggests future directions for AI development in tourism and hospitality.