This report explores the role of AI in the hospitality and tourism industry, focusing on its impact on employee turnover, customer behavior, and ethical considerations. It examines how AI influences workforce dynamics, enhances customer personalization, and contributes to operational sustainability while addressing the challenges associated with AI adoption. By analyzing recent studies and industry insights, this report aims to provide a comprehensive understanding of AI's transformative role in hospitality and the strategies businesses can implement to maximize its benefits while mitigating its risks.