Analysing the impact of artificial intelligence on the competitiveness of tourism firms: a modified total interpretive structural modeling (m-TISM) approach

Purpose This study explores the variables that drive the impact of artificial intelligence (AI) on the competitiveness of a tourism firm. The relationship between the variables is established using the modified total interpretive structural modelling (m-TISM) methodology. The factors are identified through literature review and expert opinion. This study investigates the hierarchical relationship between these variables. Design/methodology/approach The modified total interpretive structural modelling (m-TISM) method is used to develop a hierarchical interrelationship among variables that display direct and indirect impact. The competitiveness of a tourism firm is measured by investigating the effect of variables on the firm's financial performance. Findings The study identifies ten key factors essential for analysing the impact of AI on a firm's competitiveness. The m-TISM methodology gave us the hierarchical relationship between the factors and their interpretation. A theoretical TISM model has been constructed based on the hierarchy and relationship of the elements. The elements that fall in Level V are “AI Skilled Workforce”, “Infrastructure” and “Policies and Regulations”. Level IV includes the elements “AI Readiness”, “AI-Enabled Technologies” and “Digital Platforms”. Elements that fall under Level III are “Productivity” and “AI Innovation”. Level II and Level I comprise “Tourist Satisfaction” and “Financial Performance”, respectively. The levels indicate the elements' hierarchical level, with Level I the highest and Level V the lowest. Research limitations/implications Tourism and AI scholars can analyse the given variables by including the transitive links and incorporate new variables depending upon future research. The m-TISM model constructed from literature review and expert opinion can act as a theoretical base for future studies to be conducted by researchers. Practical implications Management/Practitioners can focus on the available characteristics and capitalise on them while working on the factors lacking in their organisation to enhance their competitiveness. Entrepreneurs starting their own business can utilise the elements in understanding the ecosystem of strengthening a firm's competitiveness. They can work to improve on the aspects which are crucial and trigger the impact on competitiveness. The government and management can devise policies and strategies that encompass the essential factors that positively impact the competitiveness of the firms. The approach can then be looked at with a holistic approach to cater to the other related components of the tourism industry. Originality/value This study is the first of its kind to use the modified TISM methodology to understand the impact of AI on the competitiveness of tourism firms.