Over the past century, because of increased global travel, there high growth in the travel and tourism sector. But the outbreak of an ongoing pandemic has changed this scenario, which has put tremendous focus on the Indoor Environmental Quality (IEQ) embedded with the application of technologies, especially artificial intelligence (AI). This study aims to investigate the effect of AI-technology-based IEQ in the hospitality industry on occupants’ productivity through their psychological and physiological health. Drawing from Job demand - resource theory and Nudging philosophy, we formulated the hypothesis and conceptual model, which was empirically tested by structural equation modeling (SEM). The results show that AI-technology-based IEQ is statistically significant in people’s behavioral change, which reflects on occupants’ health and productivity. Notably, AI-technology-based IEQ of the hospitality industry had a greater influence on occupants’ productivity, followed by their psychological and physiological health.