Transforming hospitality: the dynamics of AI integration, customer satisfaction, and organizational readiness in enhancing firm performance

Purpose This study aims to explore the interconnectedness between artificial intelligence (AI) integration, customer satisfaction, process task efficiency and organizational readiness within the hospitality and tourism sector, elucidating their combined influence on firm performance. Design/methodology/approach The research sample comprises 790 owners, supervisors, managers, customers and employees from 158 firms from hospitality and tourism firms in Guangzhou. This study uses a multimodel approach to analyze the relationships between AI integration, customer satisfaction, process task efficiency, organizational readiness and firm performance. Findings Model 1 indicates a positive correlation between AI integration and firm performance. Model 2 introduces customer satisfaction as a mediator, revealing its partial mediation effect on the relationship between AI integration and firm performance. Model 3 expands to demonstrate the moderating effect of process task efficiency on the AI integration–firm performance relationship. Finally, Model 4 incorporates organizational readiness as a predictor, enhancing the model’s fit and emphasizing its significance in driving firm performance alongside other factors. Research limitations/implications This study’s scope is limited to the hospitality and tourism sector in Guangzhou, potentially restricting the generalizability of findings to other industries or regions. Future research could explore diverse contexts to ascertain broader implications. Practical implications The findings underscore the multifaceted impact of AI integration on organizational outcomes, highlighting strategic opportunities for firms to enhance performance through investments in AI integration and organizational preparedness. Originality/value This study contributes to the understanding of how AI integration, along with factors like customer satisfaction, process task efficiency and organizational readiness, collectively shape firm performance within the hospitality and tourism sector, offering valuable insights for strategic decision-making and resource allocation.