Purpose: This study aims to delve into the ethical challenges in artificial intelligence (AI) technologies to underscore the necessity of establishing principles for ethical AI utilization in hospitality and tourism. Design/methodology/approach: A narrative review of research on ethical AI across diverse realms was conducted to reflect current research progress and examine whether sufficient measures have been taken to address issues pertinent to AI utilization in hospitality and tourism. Findings: Ethical issues including privacy concerns, detrimental stereotypes, manipulation and brutalization pertinent to AI utilization are elaborated. How AI should be properly used and managed ethically, responsibly and sustainably is suggested. Research limitations/implications: Five fine-tuned principles for regulating AI use in hospitality and tourism are proposed. Practical implications: A resilient mindset, enhancement of AI context adaptability, equilibrium between development and regulation and collaborative effort of multiple stakeholders are paramount. Originality/value: Through applying the AI evolution trajectory model, this study contributes to the current discourse of managing AI by proposing a framework that addresses the specific characteristics of hospitality and tourism.