Purpose This paper aims to research, identify and discuss the benefits and overall role of big data and artificial intelligence (BDAI) in the tourism sector, as this is depicted in recent literature. Design/methodology/approach A systematic literature review was conducted under the McKinsey’s Global Institute (Talwar and Koury, 2017) methodological perspective that identifies the four ways (i.e. project, produce, promote and provide) in which BDAI creates value. The authors enhanced this analysis methodology by depicting relevant challenges as well. Findings The findings imply that BDAI create value for the tourism sector through appropriately identified disseminations. The benefits of adopting BDAI strategies include increased efficiency, productivity and profitability for tourism suppliers combined with an extremely rich and personalized experience for travellers. The authors conclude that challenges can be bypassed by adopting a BDAI strategy. Such an adoption will stand critical for the competitiveness and resilience of existing established and new players in the tourism sector. Originality/value Besides identifying the benefits that BDAI brings in the tourism sector, the research proposes a guidebook to overcome challenges when introducing such new technologies. The exploration of the BDAI literature brings important implication for managers, academicians and consumers. This is the first systematic review in an area and contributes to the broader e-commerce marketing, retailing and e-tourism research.