An Exploratory Study on the Artificial Intelligence Practices on the Human Capital Development within Tourism Village Business Sustainability in Indonesia

This exploratory study investigates the role of artificial intelligence (AI) practices in enhancing human capital development and promoting business sustainability within tourism villages in Indonesia. As tourism villages become increasingly significant to Indonesia’s rural economy, the need to foster sustainable business models that can maintain cultural heritage while promoting economic growth has gained attention. AI technologies, including machine learning, data analytics, and automation, present opportunities for improving human capital development by enhancing skill-building, training, and decision-making processes. This study examines how AI tools are being integrated into training programs, recruitment processes, and daily operations of tourism village businesses to support workforce growth, improve service quality, and ensure long-term sustainability. Through qualitative data collected from tourism village stakeholders in Bali and Java, the research explores AI’s impact on local workforce capabilities, productivity, and innovation in tourism-related services. The study finds that AI practices are helping to bridge skill gaps, enhance workforce efficiency, and optimize resource management. However, challenges such as limited access to technology, digital literacy, and the need for infrastructure development hinder broader AI implementation. The paper concludes by proposing recommendations for leveraging AI practices to further strengthen human capital and business sustainability in tourism villages, thus contributing to the sector’s competitive edge in the global market.