Artificial Intelligence (AI) innovation speaks to a sizeable possibility to transform superior encounters and operational efficiencies within the travel, tourism industry. This article offers a literature review that investigates the vital openings and demanding situations associated with AI utilisation in tourism. The opportunities contain enhancement of optimisation of business decisions, personalised marketing message, automation of customer service through chatbots, and enhancement of both indoor and outdoor service experiences. However, those benefits come with challenges, such as technical constraints, financial barriers, legal considerations, and socio-ethical issues. Findings discover that AI can significantly improve efficiency and customer satisfaction. Addressing the challenges is crucial for the successful adoption of AI. Future research is suggested to enhance AI reliability, reduce costs, ensure data privacy, and balance automation with human interaction. These insights aim to direct tourism organisations and technology companies to leverage AI to improve traveller experiences.