This research adopts the artificial intelligence (AI) device usage acceptance (AIDUA) model and draws on cognitive appraisal theory. It articulates a mediated relationship leading from social influence, hedonic motivation, and anthropomorphism to acceptance of or objection to AI device usage through the mediation of performance expectancy, effort expectancy, and customer emotion in the context of smart hotels. The study further draws on two-factor theory of emotion to identify the moderation of employee presence. Based on a survey design, our research adds to the literature by underscoring why human staff is still critical even in the smart service encounter, especially when customers are looking for superior performance with low effort when using AI devices. However, the presence of employees may be a hindrance in the low performance and high effort expectancies conditions. This research pinpoints a more precise mechanism of the role of employees and technology in delivering intended emotional valence.