AI

Why Hospitality Is Lagging Behind in AI Adoption — And What Needs to Change

By Ian Millar, EHL Hospitality Business School

The Promise of AI: Beyond Buzzwords 

Artificial Intelligence (AI) is no longer a futuristic concept—it’s a present-day tool with the power to transform hospitality operations. From automating repetitive tasks to enhancing employee wellbeing, AI offers tangible benefits. Yet, despite its potential, the hospitality industry remains slow to adopt it. The answer lies not in the technology itself, but in the mindset of those who lead. The systems we use are outdated, and the management mindset surrounding AI is arguably the biggest barrier to progress. For example, while industries like retail and logistics have embraced AI for inventory management and customer personalization, hospitality still relies heavily on manual check-in processes and paper-based scheduling. 

Automating the Mundane to Elevate the Human 

Hospitality is built on human connection, but that doesn’t mean every task should be manual. Automating repetitive processes—such as scheduling, reporting, and basic communications—frees employees to focus on meaningful, guest-facing work. This shift not only improves operational efficiency but also enhances professional wellbeing. For instance, AI-powered scheduling tools can optimize staff shifts based on demand forecasts, reducing burnout and improving work-life balance. 

Younger employees, in particular, are frustrated by legacy systems. They expect intuitive, digital-first environments. When they encounter clunky interfaces and manual workflows, dissatisfaction grows. If we want to retain talent, especially Gen Z and Millennials, we must modernize. A hotel in Singapore recently implemented an AI chatbot for internal staff communication, resulting in faster response times and improved team morale.1  

The Leadership Gap: A Silent Barrier 

AI adoption isn’t just a tech issue—it’s a leadership issue. Many senior managers lack the digital fluency needed to understand, evaluate, and implement AI solutions.2  

Future of Jobs Report: Hospitality Sector Insights. This gap is especially evident in independent hotels, where resources and strategic foresight may be limited. Hotel chains, with centralized IT teams and larger budgets, are better positioned to experiment and scale AI initiatives. 

Independents, however, often rely on external consultants or wait for proven models. But even in chains, if leadership doesn’t champion innovation, progress stalls. Training programs for older managers must go beyond basic tech literacy. They should address ethical concerns, diversity, inclusion, and how AI can support—not replace—human hospitality. 

Hospitality’s Risk-Averse Nature 

Hospitality is a risk-averse industry. We pride ourselves on consistency, tradition, and service excellence. But this conservatism can be a double-edged sword. While other industries embrace digital transformation, hospitality clings to manual processes and people-heavy operations. This reliance on human labour is not inherently bad—but it becomes problematic when it prevents innovation. 

The belief that ‘technology can’t replace the human touch’ often leads to rejecting tools that could enhance that very touch. For example, AI-driven personalization engines can tailor guest experiences based on preferences and past behaviour, yet many hotels still rely on generic service models.3 

Controversial Truths: Time to Rethink 

Let’s challenge some sacred cows:
– Is the guest experience really better when everything is manual?
– Are we protecting jobs—or preventing growth?
– Is tradition a strength—or a crutch? 

These questions aren’t comfortable, but they’re necessary. The hospitality industry must confront its own resistance to change. AI won’t replace hospitality—it will redefine it. Consider how airlines have embraced AI for dynamic pricing and customer service automation, while hotels still struggle with basic CRM integration. But we also need to rethink. Modern consumers are more independent and looking for convenience. Aks yourself the question. How would you feel if your airline took away their app. You need to go to the airport 3 hours before to “check in” not knowing what seat you will have, happy? Thought not…. Have and luggage only, still need to check in, no going straight to the plane for you. But we still in most hotels make people “check in”. now while there may be legal constraints depending on the country, self check in and do it yourself is still the exception.4  

It’s all about choice! 

I am a bit believer in hospitality of “give the consumer choice”. Really, what is wrong with a self-check in kiosk in a 5* hotel. Most people will laugh at me for this opinion but if that is what your customer wants, or at least some of them, why not provide it? 

What is wrong with texting room service? Why do you make me want to speak to an employee? these are all mindset items. 

The chocolate on the pillow – we don’t have the budget! 

I hear a lot where hotels say they don’t have the budget for technology and AI implementation. “OK not a problem, is my response, remove the chocolates from the pillow”. Now imagine the response from the traditional mindset people. “Our guests will complain”, well I bet you they won’t, especially first-time guests. There you now have the budget necessary for your new AI tool.  

Building a Transparent, Community-Oriented Future 

AI-driven talent management systems can foster transparency, fairness, and community. Imagine a workplace where performance reviews are data-informed, scheduling is optimized for wellbeing, and career paths are personalized. This isn’t science fiction—it’s available now. Marriott International has piloted AI tools for talent development, resulting in improved employee retention and satisfaction. 

But to get there, we need leadership that understands the value of AI, not just its risks. We need a mindset shift—from fear to curiosity, from control to collaboration. 

Conclusion: The Time Is Now 

Hospitality has always been about people. But in a world where technology can support and elevate human service, refusing to evolve is no longer an option. AI is not the enemy—it’s the enabler. The question is: will we lead the change, or continue to lag? 

Final thought: 

I near a lot of people looking for AI solutions. For me this is the wrong approach. I learnt from Phil Le-Brun and use it a lot, “Fall in love with the problem, not the solution”. So let’s go and fix some problems…. 

References 

  1. Deloitte (2023). AI in Hospitality: Transforming Guest Experience and Operations.
  2. McKinsey & Company (2022). The State of AI Adoption in Service Industries.
  3. Cornell Hospitality Quarterly (2021). Technology and Talent: Bridging the Gap in Hospitality.
  4. World Economic Forum (2023). Future of Jobs Report: Hospitality Sector Insights

Author

Related Articles

Back to top button