This study examines the factors affecting the adoption of artificial intelligence (AI) powered online service in the tourism and hospitality sector through an extension of the technology acceptance model (TAM) by including self-efficacy, subjective norms, technological knowledge, and perceived cost in the analysis. Data was collected from 336 respondents in Malaysia’s tourism and hospitality industry using the questionnaire survey. The empirical results confirmed that perceived usefulness, ease of use, attitude, cost, and technology knowledge significantly affected behavioral intention. Self-efficacy, perceived ease of use, and perceived usefulness affected the attitude towards AI. Attitude mediated the relationship between perceived ease of use and behavioral intention as well as the relationship between perceived usefulness and behavioral intention. This study contributes to enhancing AI's understanding of the tourism and hospitality industry context. This study also improves TAM by proposing a comprehensive model with cognitive external and technology-specific factors.