Technology

The first observation is that things are developing very quickly. As compared to Moore's law, the pace of next generation AI capablities are developing at a speed that is hard to fathom based upon our species past technical endeavours.

AI Agents are a fundamentally different way to interact with data and knowledge. We are now in the phase of replicating the current status with agents (for example, to build a travel itinerary), like the first TV programs were radio shows with a camera, but pretty quickly we'll evolve to find new ways of doing the same things.

No, most hoteliers are not ready for the new era of personal AI agents. Hotels have historically been cautious about new technology, and for good reason. But AI-driven hotel discovery isn't necessarily about tech adoption. It's about storytelling.AI relies on natural language processing, so hotels should publish blog posts and substantive content that answer traveler queries on their websites.

By 2025, over 85 million existing jobs will be lost due to the seismic shift toward AI, robotization and automation, according to WEF, McKinsey and OECD. Last year labor costs exceeded 1/3 of hotel revenue and AI, robotization and automation are becoming increasingly appealing to hotel owners and operators.

Could we see digital workers comprising half of the hospitality workforce, as they already do at Amazon in this decade? Yes. This model aligns perfectly with the limited and select service layer of the industry. Under such a model I would call it the 'no service' or dormitory management layer.

To thrive in an increasingly digital world, hotels must embrace AI to deliver the highly personalized experiences modern guests demand. However, as with any transformation, it's critical not to put the cart before the horse. Before investing in advanced AI-driven solutions, hotels should first establish a strong, sustainable data foundation—a Central Guest Profile (CGP) that aggregates guest information across all touchpoints of the customer journey.