Speaking on the Hotel News Now podcast, “The Upgrade: EMEA Hospitality News,” Kevin Edwards, CEO of Hospitality Technology Advisory, said the hotel industry is not far behind most other industries in its use of and strategy around artificial intelligence but the high costs of implementation can scare off many in the sector.
“It all comes down to whether there is a viable business case and a clear return on investment. AI poses a danger to make unwieldly investments, which may not deliver a tangible return. I would almost look back toward the emergence of the internet. As hoteliers, we let the opportunity sort of pass by, but in reality the business model got disrupted from the [online travel agencies],” he said.
The speed of change and the resultant, additional cost of that change also can be daunting.
“I feel that unless there’s a clear understanding of where different AI applications are going to directly impact the performance of a hotel business, we need to seriously consider investment. AI uses need to be built into both business and technology strategy. Of course, the technology is moving at such pace it is difficult to keep aligned,” he added.
Political and social conversations about AI are also adding fire to the conversation, Edwards said.
He noted there are genuine fears that the “accuracy of generative AI in the public domain will continue to decrease."
"Essentially, we are training models on the data available on the internet,” he said.
For more from Kevin Edwards on AI integration, use, cost and strategy, please click here.