Artificial intelligence has been recognized as the innovative technology throughout the world. Today, the relevance of AI is acknowledged in most of the sectors like health care, manufacturing, education, travel, etc. Despite of this, there is limited literature available on role and application of AI in service industry. This study aims to a show a comprehensive analysis of AI in service industry using a systematic literature review. A comprehensive review of 50 papers helped to identify the benefits and challenges of AI in service industry. The study results can benefit the service industry in terms of leveraging the AI based technologies.