Artificial Intelligence (AI) is transforming hospitality by reshaping operational processes, guest experience, labour dynamics, and strategic decision-making. This study offers a critical, multi-dimensional assessment of AI’s influence, examining its economic, social, ethical, environmental, and regulatory implications. While AI enhances efficiency through automation, predictive analytics, and personalised service, it also raises concerns about data governance, algorithmic bias, workplace surveillance, and the erosion of human warmth in service interactions. Environmental benefits achieved through optimised resource management are offset by the significant energy and material demands of AI infrastructures. Regulatory frameworks remain fragmented and often inadequate for addressing the sector’s distinctive reliance on personal data and intelligent automation. The study argues that AI’s value depends on technological capability as well as on responsible governance, human-centred design, and sustainability commitments. It concludes that balanced, ethically informed adoption is essential for ensuring that AI supports a more equitable, resilient, and environmentally conscious future for hospitality.