AI at work: The implications of AI adoption in Macau’s hospitality and Tourism industries
AI tools—from predictive analytics to chatbots and service robots—are transforming workplaces worldwide. While the hospitality and Tourism industries adopt these technologies for efficiency, employees face job security concerns, ethical dilemmas, and adaptation challenges. This shift is particularly critical in Macau, a tourism hub that welcomed over 28 million visitors [1] and saw a 6% rise in labor costs in 2023 [2], even as resorts implement AI for frontline services and guest interactions. How do employees respond—psychologically and behaviorally—to these changes? A multidisciplinary team led by MUST’s School of Liberal Arts investigates this question through field surveys and experimentalnterventions.
Self-Esteem Shields Employee from AI Threats
A field study of 500 frontline employees at an integrated resort in Macau examined how the “AI disruption threat”—the threat that AI tools will replace or devalue human labor—shapes employee performance and innovation. The research team found that when employees felt threatened by AI, they experienced greater technology insecurity and reduced thriving at work, both of which undermined their service performance and innovative work behavior Crucially, employees with higher trait self-esteem were less affected; their confidence mitigated the negative impact of the AI threat on both insecurity and thriving, enabling them to maintain stronger service standards and make more creative contributions. These results underscore the importance of bolstering self-esteem to mitigate the disruptive effects of AI in hospitality settings. [3]
Job Crafting Turns AI Robots into Innovation Boosters
At Macau’s leading integrated resorts, the rollout of AI-powered service robots has been classified as a high-strength event— meaning novel, disruptive, and critical to work routines. This shift often prompts two contrasting employee reactions: AI rumination, in which staff worry about job security and mentally withdraw, and felt obligation for constructive change (FOCC), in which they seek out ways to improve processes in collaboration with the robots. By supporting job crafting—encouraging employees to reshape their roles—and providing AI-supported autonomy, managers can lessen rumination and foster FOCC, paving the way for smoother adaptation and enhanced performance. With proper training and the freedom to make decisions, Macau’s hospitality employees can turn AI disruptions into catalysts for personal growth and enhanced guest service. [4]
Autonomy Helps Hospitality Workers Handle AI Ethics
Generative AI tools like ChatGPT are increasingly handling customer inquiries and back-office processes, promising efficiency but also raising ethical questions for employees. When employees view AI use as ethically problematic, they tend to dwell on moral concerns—a process known as moral rumination, the tendency to dwell on whether AI decisions are ethically right or wrong—which can weaken their creativity and make them less likely to speak up about ethical issues. However, AI-supported autonomy helps prevent this rumination and its harmful effects. These findings suggest that organizations must also consider how to align AI use with values such as autonomy and ethical engagement to support innovation and open dialogue. [5]
Macau’s AI transformation reveals that success hinges not just on deploying technology, but on how it’s introduced—with support for employee confidence, autonomy, and ethical use. For hospitality managers, nurturing these human factors is as essential as the tools themselves.
Led by Macau University of Science and Technology, collaborated with teams from China, Taiwan, United Arab Emirates, United Kingdom, and United States, the works provide valuable insight for hospitality organizations seeking to align technological advancement with employee well-being and performance.
*Notes: This article provides research teasers for each reference to showcase the novelties
References
[1] https://www.ggrasia.com/macau-visitor-numbers-top-28mln-in-2023-mgto
[3] Aliana Man Wai Leong, Jing Yi Bai, Muhammad Imran Rasheed, Zahid Hameed, Fevzi Okumus (2025), AI disruption threat and employee outcomes: Role of technology insecurity, thriving at work, and trait self-esteem, International Journal of Hospitality Management, 126, 104064, doi.org/10.1016/j.ijhm.2024.104064.
[4] Jing Yi Bai, Tzung Cheng TC Huan, Aliana Man Wai Leong, Jian Ming Luo, Daisy X.F. Fan (2025), Examining the influence of AI event strength on employee performance outcomes: Roles of AI rumination, AI-supported autonomy, and felt obligation for constructive change, International Journal of Hospitality Management, 126, 104111, doi.org/10.1016/j.ijhm.2025.104111.
[5] Jing Yi Bai, IpKin Anthony Wong, Tzung Cheng T.C. Huan, Fevzi Okumus, Aliana Man Wai Leong (2025), Ethical perceptions of generative AI use and employee work outcomes: Role of moral rumination and AI-supported autonomy, Tourism Management, 111, 105242, doi.org/10.1016/j.tourman.2025.105242.
AI at work: The implications of AI adoption in Macau’s hospitality and Tourism industries
AI tools—from predictive analytics to chatbots and service robots—are transforming workplaces worldwide. While the hospitality and Tourism industries adopt these technologies for efficiency, employees face job security concerns, ethical dilemmas, and adaptation challenges. This shift is particularly critical in Macau, a tourism hub that welcomed over 28 million visitors [1] and saw a 6% rise in labor costs in 2023 [2], even as resorts implement AI for frontline services and guest interactions. How do employees respond—psychologically and behaviorally—to these changes? A multidisciplinary team led by MUST’s School of Liberal Arts investigates this question through field surveys and experimentalnterventions.
Self-Esteem Shields Employee from AI Threats
A field study of 500 frontline employees at an integrated resort in Macau examined how the “AI disruption threat”—the threat that AI tools will replace or devalue human labor—shapes employee performance and innovation. The research team found that when employees felt threatened by AI, they experienced greater technology insecurity and reduced thriving at work, both of which undermined their service performance and innovative work behavior Crucially, employees with higher trait self-esteem were less affected; their confidence mitigated the negative impact of the AI threat on both insecurity and thriving, enabling them to maintain stronger service standards and make more creative contributions. These results underscore the importance of bolstering self-esteem to mitigate the disruptive effects of AI in hospitality settings. [3]
Job Crafting Turns AI Robots into Innovation Boosters
At Macau’s leading integrated resorts, the rollout of AI-powered service robots has been classified as a high-strength event— meaning novel, disruptive, and critical to work routines. This shift often prompts two contrasting employee reactions: AI rumination, in which staff worry about job security and mentally withdraw, and felt obligation for constructive change (FOCC), in which they seek out ways to improve processes in collaboration with the robots. By supporting job crafting—encouraging employees to reshape their roles—and providing AI-supported autonomy, managers can lessen rumination and foster FOCC, paving the way for smoother adaptation and enhanced performance. With proper training and the freedom to make decisions, Macau’s hospitality employees can turn AI disruptions into catalysts for personal growth and enhanced guest service. [4]
Autonomy Helps Hospitality Workers Handle AI Ethics
Generative AI tools like ChatGPT are increasingly handling customer inquiries and back-office processes, promising efficiency but also raising ethical questions for employees. When employees view AI use as ethically problematic, they tend to dwell on moral concerns—a process known as moral rumination, the tendency to dwell on whether AI decisions are ethically right or wrong—which can weaken their creativity and make them less likely to speak up about ethical issues. However, AI-supported autonomy helps prevent this rumination and its harmful effects. These findings suggest that organizations must also consider how to align AI use with values such as autonomy and ethical engagement to support innovation and open dialogue. [5]
Macau’s AI transformation reveals that success hinges not just on deploying technology, but on how it’s introduced—with support for employee confidence, autonomy, and ethical use. For hospitality managers, nurturing these human factors is as essential as the tools themselves.
Led by Macau University of Science and Technology, collaborated with teams from China, Taiwan, United Arab Emirates, United Kingdom, and United States, the works provide valuable insight for hospitality organizations seeking to align technological advancement with employee well-being and performance.
*Notes: This article provides research teasers for each reference to showcase the novelties
References
[1] https://www.ggrasia.com/macau-visitor-numbers-top-28mln-in-2023-mgto
[3] Aliana Man Wai Leong, Jing Yi Bai, Muhammad Imran Rasheed, Zahid Hameed, Fevzi Okumus (2025), AI disruption threat and employee outcomes: Role of technology insecurity, thriving at work, and trait self-esteem, International Journal of Hospitality Management, 126, 104064, doi.org/10.1016/j.ijhm.2024.104064.
[4] Jing Yi Bai, Tzung Cheng TC Huan, Aliana Man Wai Leong, Jian Ming Luo, Daisy X.F. Fan (2025), Examining the influence of AI event strength on employee performance outcomes: Roles of AI rumination, AI-supported autonomy, and felt obligation for constructive change, International Journal of Hospitality Management, 126, 104111, doi.org/10.1016/j.ijhm.2025.104111.
[5] Jing Yi Bai, IpKin Anthony Wong, Tzung Cheng T.C. Huan, Fevzi Okumus, Aliana Man Wai Leong (2025), Ethical perceptions of generative AI use and employee work outcomes: Role of moral rumination and AI-supported autonomy, Tourism Management, 111, 105242, doi.org/10.1016/j.tourman.2025.105242.
