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Article

Application of Artificial Intelligence in the Tourism Sector: Benefits and Challenges of AI-Based Digital Tools in Tourism Organizations of Lithuania, Latvia, and Sweden

by
Gita Šakytė-Statnickė
* and
Laurencija Budrytė-Ausiejienė
Klaipėdos Valstybinė Kolegija, Higher Education Institution, 91274 Klaipėda, Lithuania
*
Author to whom correspondence should be addressed.
Tour. Hosp. 2025, 6(2), 67; https://doi.org/10.3390/tourhosp6020067
Submission received: 14 February 2025 / Revised: 28 March 2025 / Accepted: 15 April 2025 / Published: 18 April 2025
Versions Notes

Abstract

:
This article analyzes the application of artificial intelligence in the tourism sector in Lithuania, Latvia, and Sweden. This paper aims (1) to identify the benefits of AI-based digital tools for the operations of tourism organizations, and (2) to identify the challenges in using AI-based digital tools in tourism organizations. An analysis of scientific literature has been carried out and the primary data have been obtained from 17 semi-structured interviews conducted in tourism enterprises of three countries. The survey sampling method used is criterion sampling. The data were analyzed using qualitative content analysis, applying a conventional approach to content analysis using an inductive coding process. The main benefits of AI-based digital tools for tourism organization activities are personalization of services, automation and increased operational efficiency of tourism organization activities, etc. Tourism organizations implementing or already using artificial intelligence in their activities are usually faced with the challenge of ensuring data privacy and security, the high costs of implementing artificial intelligence systems, etc.

1. Introduction

There is a widespread and active digitization of all areas of the economy and society, including the tourism sector (Stryzhak et al., 2025). Artificial intelligence (hereinafter referred to as AI) is changing many areas, the tourism sector being no exception. The use of AI-based digital tools in tourism organizations is becoming increasingly important and relevant (Gupta et al., 2023; Gursoy et al., 2023; T. Chen, 2024; Dwivedi et al., 2024; and Wang & Uysal, 2024).
AI plays a transformative role in the tourism sector. The tourism sector is undergoing major changes due to the integration of digital technologies, especially those driven by AI (Sampaio et al., 2021; Bulchand-Gidumal et al., 2023; and Kim et al., 2024). By applying AI in tourism, organizations can improve customer experience, streamline operations and optimize resource management, etc. (Cimbaljević et al., 2024). The technology acceptance model (TAM), which is based on the theory of reasoned action (TRA) and the theory of planned behavior (TPB), is a theoretical framework that can provide insight into the adoption of AI-based digital tools by tourism organizations (Banjarnahor, 2021; Marikyan & Papagiannidis, 2024). Tourism professionals are more likely to adopt AI-based digital tools, such as recommendation systems and chatbots, if they are perceived to be useful and easy to integrate into existing systems (Pillai & Sivathanu, 2020; Yang et al., 2021). Furthermore, AI contributes to the personalization of tourism services by analyzing consumer behavior and preferences, allowing tourism organizations to offer tailored experiences (Cunha et al., 2024).
Regarding the advantages of AI-based digital tools for the tourism sector, it is important to highlight that AI-based digital tools can improve personalization, streamline operations, and improve resource allocation in the tourism sector, thereby increasing tourist satisfaction (Ma, 2024; Tuo et al., 2021). AI-based digital tools can provide recommendations and suggestions based on individual preferences, providing tourists with a more personalized and attractive experience (Zsarnoczky, 2018; Ozcelik et al., 2023; Sousa et al., 2024). AI-based digital tools in the field of tourism help tourism organizations to make informed decisions on service improvements, development, and strategic partnerships (Biedima et al., 2023). AI enables tourism organizations to adapt more quickly to market trends and customer needs (Buhalis et al., 2019; Bulchand-Gidumal et al., 2023). This is a significant competitive advantage for tourism businesses as it allows them to better meet the unique needs and expectations of customers.
The application of AI-based digital tools in tourism organizations is multidimensional and has a significant impact on improving tourism service delivery, customer satisfaction, and operational efficiency (Theam et al., 2021; Rawal et al., 2022; Tuo et al., 2021; and Hayat, 2023). However, the varying levels of adoption of AI-based digital tools in tourism, and the potential barriers and challenges that may arise, show that the integration of AI-based digital tools in tourism is still evolving. One of the most frequently cited challenges in the academic literature related to the use of AI-based digital tools is data privacy and security (Zsarnoczky, 2017; Bulchand-Gidumal, 2022). The use of AI can also raise various ethical issues (Li et al., 2019; Ali et al., 2023). The development, integration, and maintenance of AI-based digital tools may require significant financial investment (Touni, 2020; Bulchand-Gidumal et al., 2023); may present technical challenges (Bhima et al., 2023; Sundar et al., 2024); and there may not be a sufficient number of highly skilled tourism professionals who are familiar with AI tools. Moreover, rapid technological advances mean that tourism organizations need to continuously update their AI-based digital tools to remain competitive and increase operational efficiency (Buhalis et al., 2019).
Researchers highlight the challenge of using AI effectively in the tourism sector (Bulchand-Gidumal et al., 2023) and this reflects a growing interest in the use of AI to enhance the tourism sector’s efforts to integrate AI-based digital tools into its operations, although the specific experiences of tourism organizations in using AI remain under-researched in the abstract.
This paper aims (1) to identify the benefits of AI-based digital tools for the operations of tourism organizations, and (2) to identify the challenges in using AI-based digital tools in tourism organizations of Lithuania, Latvia, and Sweden.
This study contributes to the application of the technology acceptance model (TAM), based on the theory of reasoned action (TRA) and the theory of planned behavior (TPB), in analyzing AI adoption and application in tourism organizations.
The paper is related to deeper insights into the tourism organizations’ application of AI-based digital tools in Lithuania, Latvia, and Sweden and contributes to the understanding of the practical applications of AI in the tourism sector.
The results of the study enable managers and/or professionals of tourism organizations to identify the benefits of AI-based digital tools and to prepare for possible challenges in implementing or using AI-based digital tools in tourism organizations. The integration of AI-based digital tools in tourism presents both opportunities and challenges, including data privacy concerns, customer skepticism, high implementation costs, and technical difficulties, etc. Therefore, this article is useful and contributes to the responsible implementation of AI in the tourism sector, as it provides recommendations on how to address the challenges that tourism organizations encounter when implementing and using AI-based digital tools.

2. Literature Review

The tourism sector is undergoing major changes due to digital technologies, especially those based on AI (Sampaio et al., 2021; Bulchand-Gidumal et al., 2023; and Kim et al., 2024).
The technology acceptance model (TAM), based on the theory of reasoned action (TRA) and the theory of planned behaviour (TPB), provides a useful framework for understanding how tourism organizations can accept and apply AI technologies (Banjarnahor, 2021; Marikyan & Papagiannidis, 2024). TAM emphasizes two main factors: perceived usefulness and perceived ease of use. In tourism, AI-based digital tools such as recommendation systems and chatbots are likely to be adopted if tourism professionals perceive that they increase productivity and customer satisfaction and if they are easy to use and integrate into existing systems (Pillai & Sivathanu, 2020; Cimbaljević et al., 2024). Similarly, travelers are more likely to adopt AI-based digital tourism services if they find them useful in improving their travel experience and easy to interact with, which is a clear pathway for the successful integration of AI in tourism (Yang et al., 2021).
It is important to note that the increasing role of AI in the personalization of tourism services, recommendation systems, and consumer needs analysis is changing tourism organizations’ marketing strategies and consumer engagement by offering tailored experiences to tourists (Cunha et al., 2024). The use of AI-based digital tools makes it easier to analyze and visualize customer data, generate creative solutions, and even develop new tourism services while optimizing a tourism organization’s physical, human, and other resources (Biedima et al., 2023). At the same time, enhancing the capabilities of AI can significantly increase the efficiency and competitiveness of tourism organizations (Tan & Wright, 2022; Yılmaz et al., 2024).
Another key benefit of applying AI in tourism is the personalization of services (Tuo et al., 2021; Sousa et al., 2024). AI is useful in the process of analyzing customer feedback (Gaafar, 2020; Shafiezad & Mostofi, 2024). By analyzing large amounts of customer data, AI systems can provide recommendations and suggestions based on individual preferences, providing tourists with a more personalized and attractive experience (Zsarnoczky, 2018; Ozcelik et al., 2023). AI-based digital tools in the field of tourism can provide insights into customer feedback and market trends, helping tourism organizations to make informed decisions on service improvements, development, and strategic partnerships (Biedima et al., 2023). By analyzing real-time data and customer feedback, AI enables tourism organizations to adapt more quickly to market trends and customer needs (Buhalis et al., 2019; Bulchand-Gidumal et al., 2023). This is a significant competitive advantage for tourism businesses as it allows them to better meet the unique needs and expectations of customers. AI-based digital tools can improve personalization, streamline operations, and improve resource allocation in the tourism sector, thereby increasing tourist satisfaction (Ma, 2024).
In addition, AI-based digital tools enable the automation of various customer service functions, such as answering queries and providing assistance 24 h a day, 7 days a week (Gaafar, 2020; Sousa et al., 2024). This not only increases the level of service availability, but also frees up human resources to focus on more complex tasks and strategic decision-making (Gaafar, 2020).
The integration of AI-based digital tools in tourism organizations offers many benefits, but also poses various challenges that are ethical, technical, etc. One of the most frequently mentioned challenges in the academic literature related to the use of AI in all sectors, including tourism, is data privacy and security (Zsarnoczky, 2017; Bulchand-Gidumal, 2022). The use of AI-based digital tools in tourism relies heavily on analyzing vast amounts of customer data to personalize the experience and improve the tourism services provided. The intensive use of customer data raises significant concerns about the privacy and protection of customer data given the sensitivity of personal information associated with the data (Putera et al., 2022; Dwivedi et al., 2024). Ensuring the security of these data against breaches and misuse is critical to maintaining customer trust and complying with global data protection regulations such as the GDPR (Deshmukh, 2024). The use of AI can also raise various ethical concerns (Li et al., 2019; Ali et al., 2023).
The development, integration, and maintenance of AI-based digital tools can require significant financial investments (Touni, 2020; Bulchand-Gidumal et al., 2023), especially for small and medium-sized tourism businesses. The high costs associated with acquiring advanced AI-based digital tools, their ongoing maintenance, hiring qualified new professionals, or training long-standing employees can be excessive, which can increase the digital divide between tourism businesses. Integration of AI-based digital tools with existing systems and their seamless operation across different platforms may pose technical challenges (Bhima et al., 2023; Sundar et al., 2024). High reliance on AI systems increases the risk of malfunctions due to technical failures, software bugs, or cyber-attacks (Bécue et al., 2021; Yaacoub et al., 2022), which can lead to a deterioration in service delivery and customer experience. Furthermore, the rapid pace of technological advancement means that tourism organizations need to continuously update their AI-based digital tools to remain competitive and increase operational efficiency (Buhalis et al., 2019).
Tourism organizations often lack skills in understanding, using and managing AI-based digital tools. Employees may need extensive training(s) not only to use these technologies effectively, but also to accurately interpret insights generated by AI (Nam et al., 2021; Huang et al., 2022). The need for continuous education and training can limit resources and slow down the adoption of AI-based digital tools. Another persistent challenge faced by tourism organizations using AI-based digital tools in their operations is how to overcome customer reluctance and ensure that AI enhancements add real value without compromising customers’ personal preferences or privacy (Puntoni et al., 2021; Buhalis & Moldavska, 2022).
While many clients value the personalized and effective services provided by AI, others may be skeptical about AI interventions, preferring human interaction and live communication (Nam et al., 2021; Rawal et al., 2022; Song et al., 2022; and Kim et al., 2024). Furthermore, AI in tourism operates in a complex regulatory environment that varies across regions and is constantly evolving. Working with AI to comply with these regulations and to ensure compliance, especially for international activities, can be challenging and requires constant monitoring and adaptation of AI regulations (Putera et al., 2022; Cain & Webster, 2023; and Prahadeeswaran, 2023).
Another challenge faced by tourism organizations when using tools based on AI is the sometimes lack of accuracy and reliability of the result provided by the AI tool, i.e., the performance of AI systems is not always completely accurate or correct (Gehlot & Singh, 2022; Petkovic, 2023), although the scientific literature highlights the possibility of overcoming AI limitations through innovative solutions (B. Chen et al., 2019).
While AI offers transformative potential for the tourism sector, tourism organizations need to address the emerging challenges of integrating AI into their operations in order to fully exploit the benefits of AI and ensure a positive impact on service quality and customer satisfaction (Dwivedi et al., 2024).

3. Materials and Methods

The aim of the research is to analyze the application of AI in the tourism sector, i.e., to identify the benefits and challenges of utilizing AI-based digital tools in tourism organizations of three countries (Lithuania, Latvia, and Sweden).
The research question: what are benefits and challenges of application of AI-based digital tools in tourism organizations in Lithuanian, Latvian, and Swedish tourism organizations?
Since the current research was conducted in the “NordTournet-4: Developing the Creativity of Tourism Workers Through the Use of Artificial Intelligence Powered Tools to Create New or Improve Existing Tourism Services” project (No. NPAD-2022/10078), the research sample had to comprise participants from three partner countries—Lithuania, Latvia, and Sweden. Palinkas et al. (2015) describe criterion sampling as an effective method for qualitative data collection, highlighting its purposeful application. The sampling method used in this study is criterion sampling.
Criterion sampling is used. The sample for this study was selected according to the following criteria: (1) the informant has at least 2 years of experience in a tourism organization, and (2) the informant has at least 1 year of practical experience working with AI-based digital tools. All cases meeting the two criteria were selected for the study. In particular, it was important for the study that the participants had experience with AI-based digital tools. To have a more versatile look at the research phenomenon and eliminate biases, the tourism experts represented different tourism sectors.
The semi-structured interview was used to collect the research data. Semi-structured interviews are a valuable tool in research for collecting data, given their flexibility in allowing both the interviewer and the respondent to explore ideas deeply while maintaining focus on the research objectives (Kallio et al., 2016; Adeoye-Olatunde & Olenik, 2021; and Marta, 2021).
Research instrument. Based on the analysis of the scientific literature, a semi-structured interview questionnaire was designed to obtain data for the study, consisting of open-ended questions and additional questions to clarify the information. The semi-structured interview questionnaire was aimed at presenting the demographic data of the tourism organization, to identify the benefits of AI-based digital tools for the activities of a tourism organization, and to identify the challenges of using AI-based digital tools in a tourism organization.
Interview questionnaires developed on the basis of the analysis of scientific literature were agreed upon by the partners in project meeting and a piloting interview was conducted in Lithuania. After introducing the changes, the data collection process was conducted.
Research process. A total of 17 semi-structured interviews were conducted in three countries—Lithuania, Latvia, and Sweden—between October 2023 and November 2024.
During the research, 17 interviews were conducted: 6 interviews in Lithuania, 5 interviews in Latvia, and 6 interviews in Sweden. The interviews were conducted face-to-face (F2F). The conducted interviews were recorded (with the consent of the participants), transcribed manually, analyzed, and described.
Initially, 9 interviews were planned to be carried out under the Nordtournet—4 project activities, 3 in each country—but this number of interviews proved to be insufficient since the data saturation point was not reached. The sample size was based on the principle of data saturation, which is a widely accepted criterion for qualitative research (Guest et al., 2006; Braun & Clarke, 2021). In this study, thematic saturation was achieved after 17 interviews, as no new themes or insights emerged from the additional data. This indicates that the data collected were sufficient for meaningful content analysis (Croucher & Cronn-Mills, 2019). The informants from all countries who took part in the qualitative research fulfilled the criteria described above for the selection of the criterion sample, i.e., worked in organizations providing diverse tourism services and had experience in using AI-based digital tools. The 6 informants from Lithuania who participated in the semi-structured interview were coded as LT1, LT2, LT3, LT4, LT5, and LT6 (respectively, shareholder and project manager of the tourism organization; tourism specialist; head of marketing and communication department; owner of a tourism business; hotel sales manager; and head of a travel agency); the 5 informants from Latvia who participated in the semi-structured interview were coded as LV1, LV2, LV3, LV4, and LV5 (respectively, head of the tourism organization; project manager; head of the development department; tourism specialist; and owner of a tourism business); and from Sweden, 6 informants participating in the semi-structured interview coded as SE1, SE2, SE3, SE4, SE5, and SE6 (respectively, manager of the tourism organization; co-owner and creative manager; owner of the tourism business; tourism manager; hotel manager; and travel agent).
The data analysis was conducted by applying qualitative content analysis (QCA). Qualitative content analysis involves a process designed to condense raw data into subcategories based on valid inference and interpretations (Shava et al., 2021). Qualitative research focused on research ethics (Flick, 2018), which is closely linked to the validity, reliability, and quality of research data and results (Šakytė-Statnickė et al., 2023).

4. Results

4.1. The Benefits of AI-Based Digital Tools for the Operations of Tourism Organizations

Analyzing the application of AI in the tourism sector in Lithuania, Latvia, and Sweden, was firstly aimed at finding out the benefits of AI-based digital tools for the operations of tourism organizations.
Table 1 shows the main benefits using of AI-based digital tools for tourism organization activities as reported by representatives of tourism organizations in the three countries during the interviews. When talking about the benefits of AI, the interviewees first highlighted the customization of tourism services for individual needs, i.e., the personalization of tourism services [LT1, LT2, LV4, and SE1], which involves the analysis of customers’ data and behavior in order to offer personalized recommendations. The benefits of the personalization of tourism services were highlighted in all three countries; in Lithuania, this aspect was mentioned more frequently, with an emphasis on solving consumer problems and making tourism services more attractive. Personalization of services improves customer experience, increases satisfaction, and often increases customer loyalty rates. By recognizing and responding to the unique needs of each customer, tourism organizations can create a differentiated service offering that stands out in a competitive market (Bulchand-Gidumal, 2022; Monica & Soju, 2024).
The second benefit identified by the informants was the possibility to automate the activities of the tourism organization [LT1, LT2, LV1, LV3, and SE5]. The benefits of the possibility to automate activities were highlighted in all three countries; in Lithuania and Latvia, this aspect was mentioned more frequently, emphasizing the benefits of automation. Automation in the tourism sector covers a wide range of operations, from basic tasks such as booking confirmation and check-in to more complex activities such as planning a tailor-made tourism service and solving customer problems in real time.
Automation not only speeds up business operations, but also reduces the possibility of human error, providing a more reliable and seamless customer service experience, and as mentioned by the informants, provides another benefit of the use of AI-based digital tools in tourism organizations, namely increased operational efficiency [LT1, LT2, LT3, LV1, LV2, LV5, SE1, and SE2]. The benefits of increased operational efficiency were highlighted in all three countries; in Lithuania and Latvia this aspect was mentioned more frequently, with emphasis not only on time benefits (the main benefit indicated by the Swedish informants), but also on goal achievement, speed of performance, accuracy, simplicity, precision, etc. Increased operational efficiency can reduce operational costs and improve the quality of services, which benefits both the tourism organization and its customers.
The fourth benefit of integrating AI-based digital tools into the activities of a tourism organization is improved decision-making [LT2, LT3, and SE1]. The benefits of improved decision-making were highlighted in Lithuania and Sweden, but this aspect was not mentioned in Latvia, which may indicate that Latvian informants do not yet see the facilitation of the decision-making process through AI-based digital tools. Informants highlighted that AI-based digital tools provide tourism organizations with useful insights derived from customer datasets, which can significantly improve decision-making processes. Improved decision-making enables the development of strategies that are more in line with current and future market requirements and customer needs.
Informants also identified another benefit of using AI in tourism: the development of new tourism services [LT1, LT2, LT3, LT4, LT5, LT6, LV1, LV2, SE1, SE3, SE4, and SE6]. Participants of the research highlighted that the insights gained using AI-based digital tools encourage creativity and innovation in the tourism sector, e.g., “The integration of the latest technologies helps us to build the image of Lithuania as a modern country”. [LT3], “AI allows us to work more creative” [LV2]. The benefits of the development of new tourism services were highlighted in all three countries; in Lithuania and Sweden, this aspect was mentioned more frequently with the emphasis on the development of specific new AI-based tourism services, thus revealing the potential of the tourism sector. In addition, the development of new tourism services not only increases the attractiveness of a country or a tourism provider, but also contributes to the diversification of the tourism supply.
The last benefit of using AI-based digital tools in a tourism organization that was highlighted during the interviews was the optimization of resources [LT1, LT2, LT3, LV2, LV3, and SE2], i.e., the efficient and effective use of human, financial, and other resources of a tourism organization. The benefits of the optimization of resources were highlighted in all three countries; in Lithuania and Sweden, this aspect was mentioned more frequently, with the emphasis on saving resources and achieving the desired result faster. Achieving optimal use of resources can lead to significant cost savings, reduced environmental impact, and improved customer experience, creating a competitive advantage in the market and contributing to tourism development (Samala et al., 2020; Xu, 2023; and Hutsaliuk et al., 2024).
There were no major differences in the assessment of the benefits of AI-based digital tools for the operations of tourism organizations between the statements of the informants from all three countries (Lithuania, Latvia, and Sweden), except for the two benefits of AI–increased operational efficiency and improved decision-making. The benefits of improved decision-making were recognized in Lithuania and Sweden, but not mentioned in Latvia, possibly indicating that part of the Latvian informants do not yet perceive AI-based digital tools as supporting this process. Increased operational efficiency was highlighted in all three countries, with Lithuanian and Latvian informants more frequently noting not only time benefits (as emphasized in Sweden), but also goal achievement, speed of performance, accuracy, simplicity, and precision.

4.2. The Challenges in Using AI-Based Digital Tools in Tourism Organizations

The study aimed to identify not only the benefits, but also the challenges arising from the use of AI-based digital tools in tourism organizations. The results are presented in Table 2.
Data privacy and security was identified as one of the challenges in using AI-based digital tools [LT1, LT4, LT6, LV4, SE1, SE5, and SE6] in all three countries. As AI-based digital tools often rely on large datasets to learn and make decisions, it is crucial for a tourism organization to ensure that these data are securely stored and managed. Potential data violations or unauthorized access raise significant privacy concerns.
Another challenge identified by informants was customer skepticism towards AI-based digital tools [LT2, LT5, LV4, SE2, and SE4]. The customer skepticism challenge was highlighted in all three countries, with an emphasis on customers’ greater trust in the tourism organization’s staff; some Latvian informants stressed that AI is an emerging field, while some Swedish informants highlighted some customers’ fear of using new technologies. Despite the advancement and potential benefits of AI-based digital tools, consumer skepticism persists, especially regarding personalization and the privacy paradox. In order to build customer trust in the use of AI-based digital tools by a tourism organization, it is important to ensure ethical use of data and to demonstrate the tangible benefits of AI-based digital tools for the customer experience.
Informants also highlighted the challenge of the costs of AI-based digital tools deployment, i.e., the adoption of AI technology often requires significant prior investment in infrastructure, software, and expertise [LT1, LT2, LV1, LV3, and SE3]. In all three countries, the high costs of the AI-based digital tools were highlighted, focusing not only on the price of technology, but also on human resources, the time needed to implement AI-based digital tools, etc.
The deployment of AI systems can also face various technical barriers [LT1, LV2, LV3, LV4, SE4], ranging from the integration of AI into the existing IT infrastructure, to ensuring compatibility between different platforms and devices, to technology and system failures, etc., which can lead to disruption in the tourism organization or to incorrect decisions. The technical challenges were highlighted in all three countries: in Lithuania, the speed of development of AI-based digital tools and the need for suitability were emphasized; in Latvia, more emphasis was placed on the fact that AI-based digital tools only solve problems that they are trained to solve and on malware attacks; and in Sweden, the informant highlighted the link between the software problem and the overall performance of the tourism organization in delivering the tourism services provided by the AI-based digital tools.
In addition, informants highlighted that the effective use and management of AI requires specific knowledge and skills, i.e., tourism organizations often face a challenge in finding qualified staff to develop and manage AI-based systems or to use AI-based digital tools effectively [LT1, LT2, LT3, LV1, SE1, and SE2]. In all three countries, the lack of AI skills and the need for training were highlighted. Consequently, there is a growing need for comprehensive training programs to upskill existing staff and train them to use AI-based digital tools effectively in performing their functions.
Informants working in tourism organizations using AI-based digital tools in their activities are confronted with a lack of accurate and reliable AI-based digital tools results [LT1, LT2, LV3, and SE6]. Informants in all three countries indicated that the information or other results obtained through the AI-based digital tools are not always correct and accurate. In some cases, AI-based digital tools, especially in their emerging stages, may produce results that are not sufficiently accurate or reliable for critical decision-making processes.
In summary, the benefits of AI far exceed the challenges associated with its integration and use in tourism organizations, providing a compelling motivation to further development and integration of AI-based digital tools in the tourism sector. There were no major differences in the assessment of the challenges in using AI-based digital tools in tourism organizations between the statements of the informants from all three countries (Lithuania, Latvia, and Sweden).
The results of the study show that the development and application of AI technologies in tourism organizations not only improve the customer experience and increase the efficiency of tourism organizations, but also open up new opportunities for growth in the tourism sector.

5. Discussion and Conclusions

The integration of AI into the operation of tourism organizations is launching a new era of innovation and efficiency, changing the way tourism services are delivered and the customer experience is created (Pei & Zhang, 2021; Tuo et al., 2021; and Jamshed et al., 2024). This technological paradigm shift not only enhances the operational capability of the tourism organization and customer satisfaction, but also paves the way for competitive development of the tourism sector.
The application of AI in tourism organizations brings important benefits that significantly change operational efficiency, customer experience, and strategic decision-making (Zsarnoczky, 2018; Gaafar, 2020; Biedima et al., 2023; Ozcelik et al., 2023; Ma, 2024; and Shafiezad & Mostofi, 2024). These benefits not only contribute to the growth and competitiveness of tourism organizations, but also improve the overall tourism experience. Based on the analysis of the data from the study, the main benefits of utilizing AI-based digital tools for tourism organization activities are personalization of services, possibility to automate activities, increased operational efficiency of tourism organization activities, improved decision-making, development of new tourism services, and optimization of tourism organization resources. There were no major differences in the assessment of the benefits of AI-based digital tools for the operations of tourism organizations between the statements of the informants from all three countries (Lithuania, Latvia, and Sweden), except for the two benefits of AI–increased operational efficiency and improved decision-making.
The main challenges of using AI-based digital tools in tourism organizations can be identified (Bécue et al., 2021; Bulchand-Gidumal et al., 2023; Dwivedi et al., 2024; and Jamshed et al., 2024). Tourism organizations implementing or already using AI in their operations often face challenges of data privacy and security, customer skepticism, high costs of deploying AI-based digital tools, various technical challenges, lack of AI skills and training in using AI-based digital tools, as well as the lack of accuracy and reliability of the results produced by the AI-based digital tools. There were no major differences in the assessment of the challenges in using AI-based digital tools in tourism organizations between the statements of the informants from all three countries (Lithuania, Latvia, and Sweden).
The integration of AI-based digital tools into the tourism sector offers great opportunities, but also poses challenges related to data privacy, customer skepticism, high implementation costs, technical difficulties, etc. (Cristian & Tileagă, 2024; Gursoy & Cai, 2025; and Pushpakumara, 2025). To address data privacy issues, it is crucial to implement advanced encryption technologies and comply with strict data protection regulations, such as the General Data Protection Regulation (GDPR), to protect personal information (Masseno & Santos, 2018). To reduce customer skepticism, there is a need to educate customers about the benefits and safety of AI-based digital tools, thereby increasing their trust and acceptance (Bulchand-Gidumal et al., 2023; Rane et al., 2024). High implementation costs can be reduced by initiating smaller-scale pilot projects and using cloud-based solutions that reduce the need for expensive on-premises infrastructure (Jabeen et al., 2022; Jamshed et al., 2024). Collaboration with technology providers and startups can help tourism organizations to overcome technical challenges by tailoring solutions to specific industry needs (Taj & Zaman, 2022; Sousa et al., 2024). Investing in employee training programs and collaborating with academic institutions can address the AI skills gap within the organization (Kırtıl & Aşkun, 2021; Jamshed et al., 2024). Ensuring the accuracy and reliability of AI-generated results requires the use of high-quality, diverse datasets and continuous testing and improvement of algorithms (Chinamanagonda, 2021; Cristian & Tileagă, 2024). The implementation of these actions would enable tourism organizations to successfully integrate AI-based digital tools effectively, thereby improving the quality of tourism services and ensuring the development of the tourism sector.
Limitations and future research. The study was limited to three countries: Lithuania, Latvia, and Sweden. This limited sample size and geographical orientation may not fully reflect the diversity of experiences and practices in the wider tourism sector. Future research would benefit from larger studies covering more countries and more interviews. Another limitation of this study is that it focuses mainly on managers’ perspectives on the use of AI-based digital tools in Lithuanian, Latvian, and Swedish tourism organizations. Future research could complement this perspective by including frontline employees who actively interact with AI-based digital tools in their daily tasks, thus providing additional insights into their practical challenges and opportunities.
Another future research opportunity should focus on studying the long-term impact of AI on tourism, particularly its influence on business sustainability, workforce transformation, and tourism service innovation.

Author Contributions

Conceptualization, G.Š.-S.; methodology, G.Š.-S.; software, G.Š.-S.; validation, G.Š.-S.; formal analysis, G.Š.-S.; investigation, G.Š.-S. and L.B.-A.; resources, G.Š.-S. and L.B.-A.; data curation, G.Š.-S. and L.B.-A.; writing—original draft preparation, G.Š.-S. and L.B.-A.; writing—review and editing, G.Š.-S. and L.B.-A.; visualization, G.Š.-S.; supervision, G.Š.-S.; project administration, G.Š.-S. and L.B.-A.; funding acquisition, G.Š.-S. and L.B.-A. All authors have read and agreed to the published version of the manuscript.

Funding

This research was funded by Nordplus Adult project “Developing the Creativity of Tourism Workers Through the Use of Artificial Intelligence Powered Tools to Create New or Improve Existing Tourism Services” (project No. NPAD-2022/10078).

Institutional Review Board Statement

The study was conducted according to the Code of Academic Ethics of Klaipėdos valstybinė kolegija | Higher Education Institution (KVK) (approved by the Protocol Resolution No SV1-07 of the Academic Council of the KVK of 30 September 2021) and confirmed by KVK Applied Research Activities Center, Research registration number TMV-205, on 14 November 2022.

Informed Consent Statement

Informed consent was obtained from all subjects involved in the study.

Data Availability Statement

The original contributions presented in this study are included in the article. Further inquiries can be directed to the corresponding author.

Conflicts of Interest

The authors declare no conflicts of interest.

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Table 1. Key benefits of AI-based digital tools for tourism organization activities.
Table 1. Key benefits of AI-based digital tools for tourism organization activities.
CategorySubcategorySupporting Statements
Key benefits of AI-based digital tools for tourism
organizations		Personalization of
services		“…the opportunity to provide a more personalized and attractive service for tourists…” [LT1]
“We can solve a lot of problems and provide a huge amount of information to visitors”. [LT2]
“AI enables personalized tourism services…”. [LV4]
“…to create personalized messages for clients”. [SE1]
Possibility to
automate activities		“… use AI-based digital tools for automated customer analysis”. [LT1]
“A chatbot is not essentially human. It can work 24 h a day”. [LT2]
“Automated combining of data from multiple data sources helps to get the required statistics faster. “[LV1]
„… automated keyword recognition … it just brings a list of mentions and human can just check those… “[LV3]
“…AI enables automation of some tourism services… [SE5]
Increased operational efficiency“Applying AI in the activities of a tourism organization helps to better achieve organizations objectives. […] faster processing of data, saving time”. [LT1]
“…to analyze, process data faster and deliver what is most convenient for people in the shortest time”. [LT2]
“An integrated Chatbot on the website simplifies users’ navigation of the website”. [LT3]
“This is the best way to collect the tourist statistics, … we can exactly count the number of visits in certain time and location”. [LV1]
“AI allows us to work faster, more precise…” [LV2]
“It saves time, energy and helps to do the job more efficiently and professionally”. [LV5]
“…instead of taking two hours to write your contents you can just use ChatGPT-3.5”. [SE1]
“…we are getting more time for other things…” [SE2]
Improved decision-making“…facilitates more informed decision-making…”. [LT2]
“Shortens the user journey by providing the opportunity to make an immediate decision”. [LT3]
“AI has more data about customers’ needs and can offer better solutions”. [SE1]
Development of new tourism services“By using AI, we hope to create a new service”. [LT1, LT4, LT5, LT6]
“We are developing a mobile app and intend to integrate an AI tool…” [LT2]
“…the biggest potential in the tourism sector is the use of AI for travel planning”. [LT3]
“Visitor monitoring based on AI helps to identify where the highest tourist flows are and to forecast the demand for new services and the success of existing businesses”. [LV1]
“…AI creates new opportunities; it helps to create new services…” [LV2]
“It’s a new tool which helps to do things in new ways…” [SE1]
“There are multitude opportunities to use AI to get ideas for creative endeavors”. [SE3]
“…tools based on AI help or can help develop new tourism services or improve existing ones…” [SE4, SE6]
Optimization of
resources		“The use of AI allows to save working hours and achieve faster results in less time”. [LT1]
“… saves resources, which in turn saves work hours and delivers faster results in less time”. [LT2]
“It provides the opportunity to get a response here and now, without using the organization’s human resources. “[LT3]
“…this was the best decision to implement some help from AI”. [LV2]
“The primary benefit of AI is to optimize some workflows… save time and money…” [LV3]
“…it would be really great if AI could help to organize all the material, and then distribute it in most effective way”. [SE2]
Table 2. Key challenges in using AI-based digital tools in tourism organization.
Table 2. Key challenges in using AI-based digital tools in tourism organization.
CategorySubcategorySupporting Statements
Challenges in using AI-based digital tools in tourism
organizations		Data privacy and
Security		“…but we need to make sure that we respect data privacy…” [LT1]
“…the biggest challenge is to ensure data security and customer privacy…”. [LT4]
“…this is still a developing field, so the biggest challenge is data security and personal privacy…”. [LT6]
“…safety and data security…”. [LV4]
“…it is not always possible to rely on AI-based digital tools entirely for data security. Sometimes I wouldn’t share all the information” [SE1]
“…data privacy and data security…”. [SE5]
“…most important thing is safety and security of data…” [SE6]
Customer skepticism“…not all customers want to use chatbot, they do not trust…”. [LT2]
“…Customers still rely on human resources–staff–to solve urgent and complex problems”. [LT5]
“…It is still an emerging area, customers do not trust…”. [LV4]
“…there are still people who are scared, or skeptical about new technologies…” [SE2]
“…Customers still more rely on human staff to solve their problems…” [SE4]
High costs of
deploying AI-based digital tools		“… it is necessary to spend a lot of precious time mastering each AI-based digital tools”. [LT1]
“…now using it, we see potential improvements, but the high costs of upgrades limit us”. [LT2]
„…for adoption of AI powered tools also some money is needed. “[LV1]
“Different kind of resources … human resources, money…” [LV3]
“We use only those platforms that are free, because it’s so expensive…” [SE3]
Technical challenges“…changes are happening very fast, AI-based digital tools are developing very rapidly, we hardly manage to adapt…”. [LT1]
“There could be some issues with the appropriate devices to run the AI”. [LV2]
“Currently all these AI models are trained to solve specific problems… they can’t decide and learn to solve new problems”. [LV3]
“…Small malware attack can disrupt the organization’s activities…” [LV4]
“…Even minor software problems can disrupt an organization’s work and operations …” [SE4]
Lack of AI skills and training needs“…the employee has to prepare, learn to use AI, analyze, interact with AI…”. [LT1]
“AI-based digital tools change and develop quickly, so it’s important to keep learning” [LT2]
“…the hardest part is the quality of the task, because the AI creates what you tell it, so the human factor and the idea coming from us is really important”. [LT3]
“Not every person can use it, because you need some skills to use it… you have to have interest and skills”. [LV1]
„…it is important to be able to adapt to the change of the technologies… “[SE1]
„…lack of information, basically, lack of knowledge on how to use… “[SE2]
Insufficiently accurate and reliable result
provided by the AI-based digital tools		“… it is always necessary to check, to see if it has given the right information and made it right…”. [LT1]
“What the AI creates or writes needs to be checked carefully, because it is often incorrect”. [LT2]
“Insufficient data leads to inaccurate information due to low number of Latvian language users”. [LV3]
“… not always correct and accurate…” [SE6]
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Šakytė-Statnickė, G.; Budrytė-Ausiejienė, L. Application of Artificial Intelligence in the Tourism Sector: Benefits and Challenges of AI-Based Digital Tools in Tourism Organizations of Lithuania, Latvia, and Sweden. Tour. Hosp. 2025, 6, 67. https://doi.org/10.3390/tourhosp6020067

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Šakytė-Statnickė G, Budrytė-Ausiejienė L. Application of Artificial Intelligence in the Tourism Sector: Benefits and Challenges of AI-Based Digital Tools in Tourism Organizations of Lithuania, Latvia, and Sweden. Tourism and Hospitality. 2025; 6(2):67. https://doi.org/10.3390/tourhosp6020067

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Šakytė-Statnickė, Gita, and Laurencija Budrytė-Ausiejienė. 2025. "Application of Artificial Intelligence in the Tourism Sector: Benefits and Challenges of AI-Based Digital Tools in Tourism Organizations of Lithuania, Latvia, and Sweden" Tourism and Hospitality 6, no. 2: 67. https://doi.org/10.3390/tourhosp6020067

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Šakytė-Statnickė, G., & Budrytė-Ausiejienė, L. (2025). Application of Artificial Intelligence in the Tourism Sector: Benefits and Challenges of AI-Based Digital Tools in Tourism Organizations of Lithuania, Latvia, and Sweden. Tourism and Hospitality, 6(2), 67. https://doi.org/10.3390/tourhosp6020067

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