The Potential Impact of AI-Driven Personalization on Tourist Satisfaction and Retention in Sri Lanka

Abstract

This study explores the impact of Artificial Intelligence (AI) on enhancing personalized travel experiences in Sri Lanka's tourism sector. Employing a qualitative research approach, data was collected through in-depth interviews with 18 tourists and focus groups with 21 tourism service providers. The study applies the Technology Acceptance Model (TAM), Diffusion of Innovations Theory (DOI), and Service-Dominant Logic (SDL) to analyze perceptions, adoption challenges, and potential benefits of AI technologies. Key findings indicate that while AI tools like chatbots and personalized recommendations can significantly enhance customer service and operational efficiency, their adoption is hindered by technical issues, high costs, and resistance to change. This research was conducted to provide strategic insights that can help stakeholders in the tourism sector make informed decisions about AI adoption. To address these barriers, the study recommends comprehensive training programs, robust technical infrastructure, customization to local contexts, effective communication strategies, and collaboration between stakeholders. The implications suggest that leveraging AI can enhance Sri Lanka's tourism competitiveness and promote sustainable practices. Future research should focus on the long-term impacts of AI-driven tourism on local communities and the role of government support in facilitating AI adoption.