expectation but a certitude that businesses will further adopt and adapt to AI to fuel and streamline operations . Consider the ubiquity of chatbots , which ( try to ) simulate human conversations and ( attempt to ) provide helpful responses to inquiries . Seek to , because more often than not , they don ’ t provide the answer , leaving the user yearning for a human . AI , still , is poised to engender automation , which , as it goes , could free up humans to do other things machines can ’ t yet achieve .
It ’ s a lot to take in , but it must be embraced , argue many . “ Artificial intelligence will revolutionize how businesses compete and grow , representing an entirely new factor of production that can ignite corporate profitability . To realize this significant opportunity , it ’ s critical that businesses act now to develop strategies around AI that put people at the center and commit to develop responsible AI systems that are aligned to moral and ethical values that will drive positive outcomes and empower people to do what they do best – imagine , create and innovate .” The comment was made by Paul Daugherty , chief technology and innovation officer at Accenture . In 2017 . At the time , Accenture estimated that businesses that successfully applied AI could increase profitability by an average of 38 % by 2035 .
IMPLICATIONS FOR HOTEL INDUSTRY Six years later , where does it stand ? Generative AI is all the rage and has many in the hospitality industry scrambling to understand its impact and how to harness its gifts . “ I think it ’ s a revolution ,” Jason Freed , a hospitality data evangelist at data platform MDO , said of AI , comparing it to the transformative power of the internet . At its basic level , generative AI performs like a search engine , aggregating a multitude of data from myriad sources . But it goes beyond mere search engine results , spitting back links to queries . It becomes conversational , moving from predictive to prescriptive , Freed said . “ Instead of just giving you a bunch of information , it ’ s now telling you what you can do with that information .”
AI will accelerate from here , Freed argued , reshaping the customer experience and also , in the case of hotels , how they are operated . “ It ’ s going to make everything more self-service , but not to the point where we ’ re sacrificing the hospitality touch . It ’ s going to make self-service in a better way ,” he said .
This has been tried before . In the mid- 2000s , self-service kiosks began cropping up in hotel lobbies , a ploy to eliminate wait times by giving guests the option to check in and obtain room keys by connecting directly into the hotel ’ s property management system .
The adoption rate was iffy but could resurge as guests become more comfortable with contactless and automated processes . Freed compared it to self-checkout at the grocery store or big-box stores like Target , which is gaining in popularity .
BRAND ADOPTION Hyatt Hotels Corp . is already leveraging AI across its more than 25 brands , all under the vigilant eye of Ray Boyle , VP of data , analytics and insights , whose central focus is to apply AI in a way that enhances the guest experience and betters profit for owners . Hyatt , he said , has been investing in software powered by AI and machine learning for several years .
“ AI can enhance the guest experience by increasing the level of personalization during the booking process , from optimizing search processes , property recommendations and ensuring each guest sees the right content and offers ,” Boyle said . In a way , it ’ s all about making the booking decision easier for prospective guests and gaining deeper engagement with customers .
Owners and brands make investments
INSTEAD OF JUST GIVING YOU A BUNCH OF INFORMATION , IT ’ S NOW TELLING YOU WHAT YOU CAN DO WITH THAT INFORMATION
– JASON FREED , DATA EVANGELIST , MDO
when they expect a return . Though AI doesn ’ t have foreseeable benefit on real estate value , it does on cash flow . “ From an operational standpoint , AI has the ability to enhance existing technologies , such as revenue management , insight processes and central reservation systems ,” said Boyle , adding that the ability of AI to automate certain processes can reduce operating costs .
Paring down operating costs is often a euphemism for cutting staff . When hotels turn to AI to automate certain processes , it can free up staff to attend to matters that a computer can ’ t perform , like helping a guest with a bag or bussing a table .
“ Some people are afraid to talk about that across the industry , that fewer people are good for the industry ,” Freed said . “ Costs are continually rising and labor is the biggest expense .”
It ’ s a truism that you get what you pay
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