Purpose The hospitality and tourism sector has witnessed phenomenal growth in customer numbers during the postpandemic times. This growth has been accompanied by the use of technologies in customer interface and backend activities, including the adoption of self-serving technologies. This study aims to analyze the existing practices and challenges and establish a research agenda for the implementation of generative artificial intelligence (AI) (such as ChatGPT) and similar tools in the hospitality and tourism industry. Design/methodology/approach This study analyzes the existing literature and practices. This study draws upon these practices to outline a novel research agenda for scholars and practitioners working in this domain. Findings The integration of generative AI technologies, such as ChatGPT, will have a transformational impact on the hospitality and tourism industry. This study highlights the potential challenges of implementing such technologies from the perspectives of companies, customers and regulators. Research limitations/implications This study serves as a reference material for those who are planning to use generative AI tools like ChatGPT in their hospitality and tourism businesses. This study also highlights potential pitfalls that ChatGPT-enabled systems may encounter during service delivery processes. Originality/value This study is a pioneering work that assesses the applications of ChatGPT in the hospitality and tourism industry. This study highlights the potential and challenges in implementing ChatGPT within the hospitality and tourism industry.