When disclosing the artificial intelligence (AI) technology integration into service delivery backfires: Roles of fear of AI, identity threat and existential threat

Grounded in technological singularity theory, this research assesses how disclosing AI integration in hospitality services impact customers' attitudes and behavioral intentions in three studies. Specifically, study 1 lays the foundation by showing that disclosing the AI presence reduces customers' cognitive and affective trust, perceived quality, and usage intention in hedonic services but not in utilitarian ones. Study 2 further reveals that disclosing AI integration in hedonic contexts significantly heightens the adverse effects of fear of AI on customers' responses. Study 3 identifies that existential and identity threats of AI are the primary drivers of customers' fear of AI, with existential threats being more impactful. The findings indicate that disclosing AI integration hinders customers' acceptance of such technologies in hospitality services. This research identifies the key indicators of such effects and provides implications for strategizing the disclosure of AI in hospitality services to alleviate customers' negative reactions.