Artificial intelligence (AI) is reshaping industries globally, and the tourism and hospitality sector in Bangladesh presents a landscape ripe for transformation. This chapter explores AI adoption in Bangladesh's tourism and hospitality industry, analyzing data from academic literature, government, and industry reports, identifying utilization of artificial intelligence platforms, associated challenges, as well as ways forward. It examines the impacts of adopting AI-powered chatbots, virtual assistants, personalized recommendation engines, and advanced price optimization algorithms in the tourism and hospitality industries of Bangladesh. The chapter investigates the associated key challenges regarding data privacy, job disruption, algorithmic biases, change aversion, technical inexperience, and implementation costs. The chapter recommends the ways forward for integrating AI-driven solutions with skillful human interaction for ensuring effective marketing, data security, enhanced service quality, transparent information dissemination, improved visitor impressions and personnel training. © 2024 by IGI Global. All rights reserved.