This study explores the perception of the transformative impact of Business Intelligence (BI) and Artificial Intelligence (AI) on the service sector by employees in an airline and hotels in Serbia. Four key factors were identified: business optimization (BO), service personalization (PS), efficiency of resource management (ERM), and business transformation (BT). Data were collected through a survey of employees in these sectors, and the results were analyzed using structural modeling. The findings indicate that employees perceive a significant positive impact of BI and AI on business transformation, particularly in terms of improving operational efficiency, increasing customer satisfaction, and enhancing business sustainability. This study highlights the importance of implementing BI and AI technologies in advancing the service sector, providing innovative approaches to optimizing business processes and personalizing services. These findings contribute to a better understanding of how modern tools and technologies can improve the performance and competitiveness of service enterprises in Serbia. © 2025 Elsevier B.V., All rights reserved.