By Adam and Larry Mogelonsky
Coming out of HITEC 2024 in Charlotte, Generative AI (genAI), specifically large language models (LLMs) and generative pre-trained transformers (GPTs), are moving beyond only chatbots for use cases in the hospitality sector. These AI tools are primarily recognized for handling guest inquiries and managing standard room reservations. However, their potential extends far beyond these capabilities. The future of AI in hospitality lies in agents trained for complex tasks, offering advanced solutions across various departments such as HR, finance, sales, and marketing.
Despite the promising advancements, there are significant concerns about the deployment of AI without human oversight. One notable case in the Canadian travel industry highlighted the risks associated with AI errors, known as ‘hallucinations’. In this instance, an AI chatbot provided incorrect information to a passenger regarding bereavement airfare refunds, contradicting the airline’s official policy. This led to a legal case where the airline was held accountable for the misinformation, underscoring the potential liabilities of relying on AI for customer interactions.
Such incidents illustrate the challenges of expanding AI’s role in hotel operations. While genAI can streamline processes like scheduling housekeepers or managing room assignments, errors could have significant repercussions, such as misaligned shifts or improperly allocated group bookings. These examples emphasize the need for caution, as AI’s reasoning differs from human logic, making potential mistakes difficult to foresee.
Despite these challenges, the advantages of AI agents in hospitality are too significant to ignore. As technology leaders in the hotel industry focus on quality assurance, they explore concepts like retrieval-augmented generation (RAG) to mitigate risks. RAG enhances AI capabilities by restricting responses to information from a hotel’s internal data, thus minimizing hallucinations and ensuring accurate, context-specific outputs.
RAG operates by augmenting prompts with relevant internal data, allowing AI to generate precise responses or perform specific tasks. This method holds great potential for extending AI’s functionality in hotels while safeguarding against errors in transactional data handling. By providing accurate context, AI agents can reliably handle complex use cases that have long been anticipated but not fully realized.
Potential applications of AI agents in hospitality are vast. For instance, they can personalize room amenities based on guest preferences, offer conversationally-driven custom reservations, and implement predictive maintenance with prescriptive repair schedules. Additionally, AI can optimize staff scheduling, ensuring efficient property management without disrupting employee routines.
As AI technology evolves, hoteliers are encouraged to inquire about their vendors’ RAG roadmaps and support for advanced automation. While there are numerous technical aspects involved in deploying these innovations, the focus remains on leveraging AI to enhance guest experiences and operational efficiency.
While the use of generative AI in hospitality currently emphasizes chatbots and other elements of a trained recommendation engine, its potential encompasses much more. With careful implementation and a focus on minimizing risks, AI agents can revolutionize the industry by performing complex tasks and offering personalized services, or at the very least help hoteliers optimize service timing. However, the transition requires a balanced approach, considering both the benefits and potential pitfalls of integrating AI into hotel operations. All vendors seen at HITEC are incorporating AI under the hood, so ask them what’s new and what you can implement for incremental efficiencies.
