Today, the use of smart and intelligent technologies during tours and travel is definite. Tourists avail themselves of artificial intelligence (AI) services in booking systems, virtual assistance, chatbots, ordering food items, maps, and many more. The present study aims to explore the relationship between AI and customer engagement and the relationship between customer engagement and customer loyalty. Further, the study also examines the moderating role of age between AI and customer engagement. Three hypotheses were developed elaborating the research framework. Assam was selected as the study site and the model was empirically tested using PLS-SEM. The findings of the study suggest that AI impacted customer engagement and customer engagement influenced customer loyalty. The study extends our knowledge and provides deeper insights into the influence of AI on customer behavior in the tourism sphere.