Artificial intelligence in hospitality: Revolutionizing hospitality through AI
ARTIFICIAL INTELLIGENCE VS. HUMAN IGNORANCE
The article mentions some aspects of Artificial Intelligence (AI) in the hospitality world.
The chosen title, "ARTIFICIAL INTELLIGENCE VS HUMAN IGNORANCE," emphasizes the importance of a thorough understanding of AI. It represents a provocation, suggesting that in order to fully exploit the potential of AI, it is essential to first understand it thoroughly and use it consciously.
1. Difference between Automation and Artificial Intelligence
Automation and artificial intelligence (AI) are two concepts that are often used interchangeably, but they actually have distinct meanings and applications. Here is an explanation of the main differences between automation and AI:
Definition:
Automation: Refers to the process of using technology (such as machinery, computers, software) to perform tasks or processes without direct human intervention. Automation is often based on predefined rules and repetitive sequences of actions.
Artificial Intelligence (AI): Refers to the simulation of human intelligence in systems, enabling computers to perform tasks that normally require human intelligence such as visual recognition, speech recognition, decision making and translation between languages.
Complexity:
Automation: Often involves repetitive and predictable processes based on well-defined rules.
AI: Deals with processes that require learning, reasoning, and adaptive skills. AI can handle complexities beyond fixed rules.
Learning skills:
Automation: Automated systems generally do not learn from their actions or data. They perform tasks based on preset instructions.
AI: Learning is a key feature of AI. AI-based systems, such as neural networks, can learn from data, improve and adapt over time.
Applications:
Automation: For example, a control system in an industry that controls the flow of water according to certain parameters is an example of automation.
AI: A recommendation system that suggests products to users based on their past behavior is an example of the application of AI.
Adaptability:
Automation: An automated system will perform the same sequence of actions every time unless it is reprogrammed.
AI: AI-based systems can adapt and improve their performance based on new data or situations.
In summary, while automation is about simplifying and optimizing processes based on predefined rules, AI focuses on simulating and emulating human intelligence and cognitive capabilities. However, in many modern applications, automation and AI are combined to create systems that not only automate tasks but also learn and adapt over time. [1]
2. Types of aritificial intelligence
Artificial Narrow Intelligence:
Artificial Narrow Intelligence (ANI), also known as narrow AI or weak AI, describes AI tools designed to perform very specific actions or commands. ANI technologies are developed to serve and excel in one cognitive capability, and cannot independently learn skills outside their design. They often use machine learning algorithms and neural networks to complete these specific tasks. For example, natural language processing is a narrow type of intelligence because it can recognize and respond to voice commands but cannot perform other tasks beyond these. Examples include image recognition software, self-driving cars, and virtual assistants such as Siri.
Artificial General Intelligence:
Artificial General Intelligence (AGI), also called general AI or strong AI, describes AIs that can learn, think and perform a wide range of actions in a human-like manner. The goal of AGI design is to create machines that can perform multifunctional tasks and act as realistic assistants with human-equivalent intelligence in daily life. Although still a work in progress, the basis of AGI could be technologies such as supercomputers, quantum hardware, and generative AI models such as ChatGPT.
Artificial Superintelligence:
Artificial Superintelligence (ASI), or super AI, is a concept closer to science fiction. It is theorized that once AI reaches the level of general intelligence, it will learn so quickly that its knowledge and capabilities will surpass those of humans. ASI would be the basic technology for fully self-aware AI and other individualistic robots. This concept also fuels the media cliché of "AI takeovers," as seen in movies such as Ex Machina or I, Robot. David Rogenmoser, CEO of AI writing company Jasper, said that ASI will become by far the most capable form of intelligence on Earth, far surpassing human capabilities.
Reactive Machines:
Reactive Machines are the starting point of AI development, capable of responding to immediate stimuli but without the ability to memorize or learn from past experience. A well-known example is IBM's Deep Blue, which outperformed grandmaster Garry Kasparov in a game of chess in 1997. However, these machines cannot accumulate knowledge or perform more complex tasks unless they evolve in terms of memory management and data storage.
Limited Memory:
The Limited Memory model represents an advance in the evolution of AI, allowing machines to store data and use it to make predictions. This type of AI, which saw significant progress in 2012 thanks to innovations from Google and Image Net, can build a limited knowledge base by improving over time. Today, most AI applications fall into this category, with examples ranging from chatbots to self-driving vehicles. [2]
3. Top players in AI.
OpenAI, Microsoft, Google, Anthropic, and Stability are all key players in the field of Artificial Intelligence (AI), each with a different approach and focus.
OpenAI began as an organization focused on nonprofit research, but has since transformed into a more traditional for-profit company, providing access to its advanced language models such as ChatGPT through APIs and apps. It is led by Sam Altman and is recognized as a leader in large language models (LLMs), while also conducting research in other areas.
Microsoft has invested heavily in AI research, but has been less successful in turning these experiments into high-impact products. However, it made a smart move by investing in OpenAI, resulting in a long-term partnership that now powers its conversational agent Bing.
Google, despite the invention of the transformer that catalyzed the AI explosion, is seen as lagging behind others in the field of LLMs. However, it is working hard on its own LLMs and other AI technologies, with CEO Sundar Pichai emphasizing the company's commitment to AI in research and productivity.
Anthropic was founded by siblings Dario and Daniela Amodei after OpenAI moved away from its original nonprofit mission. With substantial capital at its disposal, Anthropic stands as a rival to OpenAI, aiming to become an open and ethically conscious AI research organization, even if its models, such as Claude and Claude 2, are not yet so well known.
Stability represents an open source approach to AI, making available the generative AI models it trains, although this has also accelerated ethically dubious projects, such as the generation of pornographic images and the unauthorized use of intellectual property. This entity embodies the philosophy that "information wants to be free," but it brings with it some ethical challenges.
In general, each of these actors contributes to the rapid development and different faces of the AI ecosystem, with a range of approaches from open source to commercial exclusivity, and different ethical and strategic priorities. [3]
4. AI in hospitality
A recent report by Accenture and one by PwC highlight the potential of Artificial Intelligence (AI) in accelerating economic growth, predicting a doubling of annual growth rates by 2035 and a $15.7 trillion contribution to the global economy by 2030. Although AI brings benefits, it also presents challenges, such as the risk of automation for 14 percent of jobs in 21 countries and the possible replacement of 800 million jobs by 2030, although its role in creating new jobs is recognized.
Artificial intelligence (AI) is revolutionizing the hotel industry, affecting various departments within hotels. In customer service, chatbots and virtual assistants handle requests and reservations in real time, while AI technologies facilitate quick, contactless check-ins and check-outs. In room management, AI supports predictive maintenance and the implementation of Smart Room technologies to improve the customer experience. In marketing and sales, AI-aided predictive analytics improve marketing strategies, while AI-based personalization creates tailored offers for guests. Resource management benefits from AI for price optimization and energy management, reducing operational costs. In F&B, AI helps in inventory management and provides personalized recommendations to guests. Finally in housekeeping, AI assists in efficient housekeeping planning. Effective adoption of AI technologies can improve operational efficiency and guest experience, making it essential for hospitality professionals to educate themselves on these trends to remain competitive in a rapidly changing environment. [4]
5. Scope of application
Artificial Intelligence (AI) is emerging as a significant catalyst in the hospitality industry, improving operations, revenue management, marketing, sales and management of MICE (Meetings, Incentives, Conferencing, Exhibitions) groups, guest experience, and human resources.
Operation:
AI automates repetitive tasks such as reservations and contactless check-in processes, enabling staff to provide personalized service. Through chatbots and virtual assistants, AI improves customer service by answering guest questions and providing recommendations. AI also optimizes room management and maintenance, analyzes data to optimize pricing and manage inventory, and improves energy efficiency through Smart Building technologies.
Revenue Management:
AI uses predictive modeling to analyze future demand, optimize pricing and room availability, and customize offers to maximize revenue. It also helps identify upselling and cross-selling opportunities, optimizing pricing and inventory decisions in real time.
Hotel Marketing:
AI automates data analysis and customer segmentation, enabling more targeted marketing campaigns. Chatbots and virtual assistants become prevalent tools for interacting with guests in real time, while predictive analytics help predict customer behavior and market trends.
Corporate, MICE and groups:
AI helps predict future demand for group sales, automates repetitive tasks, and provides 24/7 support to business travelers through chatbots and virtual assistants, improving customer data management and analysis.
Guest Experience:
AI is set to revolutionize the guest experience by providing more personalized and efficient services, improving security, and integrating virtual and augmented reality to deliver immersive experiences.
Human Resources and Labor:
AI will change recruitment and human resource management by automating tasks such as CV screening and interview scheduling, improving scheduling management, and providing feedback on employee performance. Data analytics provided by AI will help improve employee retention and satisfaction while improving job security. [5]
6. Benefits of AI in hospitality
Automation of repetitive tasks
Better service customization
Forecasting maintenance needs
Optimization of pricing and inventory decisions
Increased energy efficiency
Reduced operating costs [6]
7. Risks of AI in hospitality
Loss of Personal Touch
Dependence on Technology
High Initial Costs
Staff Training
Obsolescence
Loss of work
Difficulties in integration
Standardization
Exception handling [7]
8. AI in hospitality
Hoteliers should not underestimate this new technology and make the same mistake they made with the advent of the Internet and the emergence of OTAs.
Those who understand how to leverage AI tools to become more efficient and effective will increase their competitive advantage. Those who do not inform themselves are likely to find themselves in a more difficult situation. [8]
9. Examples of success
Hilton Hotels & Resorts:
Hilton uses AI-integrated check-in systems, such as facial recognition, to speed up the guest check-in process. Through the Hilton app and their own face, guests can check in. Hilton also introduced Connie, an AI-powered robot that can answer guest questions and recommend local attractions and restaurants.
Marriott International:
Marriott leverages AI to analyze and predict customer requests and preferences, thereby personalizing experiences. They also use AI-powered chatbots that answer guest questions through platforms such as Slack and Facebook Messenger, analyzing feedback and reservations to improve customer service.
Choice Hotels International:
Choice uses chatbots to provide 24/7 customer service, handling multiple requests simultaneously and reducing wait times. These chatbots also automate processes such as reservations and cancellations. AI helps Choice identify customer preferences, send personalized offers, optimize pricing, and improve revenue management.
Hyatt Hotels:
Hyatt leverages AI to analyze and predict guest behavior, feedback and preferences. They offer a loyalty program, World of Hyatt, with three levels - Discoverist, Explorist and Globalist - that rewards guests with benefits such as upgrades, free nights and exclusive experiences.
Wyndham Hotels & Resorts:
Wyndham has integrated AI into its mobile app to provide a personalized experience. The app suggests attractions and restaurants based on guests' behavior and preferences. Wyndham was the first hotel chain to integrate a revenue management system to analyze competition, room demand, and pricing data, thereby optimizing occupancy and maximizing revenue.[9]
10. OpenAI ChatGPT
ChatGPT, a model developed by OpenAI, is an advanced conversational agent based on artificial intelligence. At its core, ChatGPT uses machine learning techniques to generate human-like text based on the input it receives. It can understand the context of a conversation, answer questions, provide explanations, and even generate creative content, such as stories or poems. The acronym "GPT" in ChatGPT stands for "Generative Pretrained Transformer," which represents the core technology that powers it:
"Generative" indicates the model's ability to generate text rather than simply understand or classify it.
"Pretrained" indicates that the model underwent an initial training phase in which it learned from a large body of Internet texts.
"Transformer" refers to the type of model architecture used, which helps to understand the context of the input text.
The magic of the model lies in its ability to recognize and exploit linguistic patterns from giant datasets with which it has been trained. Training, in the context of machine learning, essentially means "optimizing" millions of internal parameters of the model so that it can provide appropriate answers to a wide range of questions. [10] [ 11] [12]
Practical applications of Chat GPT
Respond to reviews in different languages
Create newsletter texts in different languages
Responding to elaborate requests from guests
Set up corporate contract drafting
Destination inquiries
Having Ideas for Seasonal Menus
Etc...
Access to OpenAI:
Visit the OpenAI website at https://www.openai.com/.
If you already have an account, log in. If you do not have an account, you will need to register.
Dashboard:
Once you are logged in, you will be directed to your dashboard. From here, you can access various services offered by OpenAI.
Direct use on OpenAI Playground:
OpenAI has a space called "Playground" that allows you to interact directly with models such as Chat GPT.
Navigate to the OpenAI Playground.
Select GPT (or the specific version you wish to use) from the list of available models.
Start typing your prompt or question in the text box and press enter. You will receive a response from the template.
How to write the correct prompts:
Be clear and specific
Provide context
Avoid ambiguous questions
Use sequential questions [13]
10. Currently active apps using Chat GPT:
DuveAI: guest experience platform
Easyway: the Guest Relationship Platform
The Hotels Network (THN): AI Assistant that enables hotel marketers to create personalized and engaging messages on the website
HiJiffy AplysiaOS: guest communications operating system
BOOK ME BOB: AI chatbot for hospitality.
Rebyū: AI-powered review management assistant [14]
11. Preparing for the future
Artificial Intelligence (AI) is no longer a concept relegated to science fiction tales or advanced research laboratories; it has become a palpable and inescapable reality of our daily lives. AI is here to stay, and it is not just a passing fad or a technological gadget: it represents a technological singularity that has the potential to revolutionize many areas of our existence, both in the private and professional spheres. And, perhaps most fascinating and at the same time disturbing, is that we are not yet able to predict how far this revolution may go.
In the context of the travel and hospitality industry, the confrontation with AI can be compared to the advent of the Internet. We all remember how much the Internet has changed the dynamics of booking, communication and management in the tourism industry. It has democratized access to information, revolutionized the way guests and accommodations interact, and made possible the emergence of new businesses and business models. Similarly, AI has the power to profoundly redefine travel experiences, making them more personalized, efficient, and memorable.
And so, just as happened with the Internet, it is essential that hospitality stakeholders understand the importance of adopting and adapting to AI. As AI continues to evolve and impact the industry, it will be critical for businesses to stay abreast and take advantage of the opportunities presented by this technological revolution. We cannot afford to miss this train as well. Let's face the future with enthusiasm, openness and preparedness, welcoming AI as the new ally for an increasingly innovative and customer-centric hospitality industry.
For more information, please feel free to contact us:
Next Level Hospitaity
+41 (0)79 254 64 30
info@nextlevelhospitality.ch
[1] Simone Puorto, Hotel Distribution 2050, Hoepli, 2022.
[2] https://builtin.com/artificial-intelligence/types-of-artificial-intelligence
[3] https://techcrunch.com/2023/08/04/age-of-ai-everything-you-need-to-know-about-artificial-intelligence/.
[4] https://hoteltechreport.com/news/ai-in-hospitality
[5] https://hoteltechreport.com/news/ai-in-hospitality
[6] https://hoteltechreport.com/news/ai-in-hospitality
[7] https://hoteltechreport.com/news/ai-in-hospitality
[8] https://hoteltechreport.com/news/ai-in-hospitality
[9] https://newgenadv.com/2023/03/how-top-hotel-brands-utilizes-ai-to-their-advantage
[10] https://techcrunch.com/2023/09/28/chatgpt-everything-to-know-about-the-ai-chatbot
[11]https://www.datacamp.com/blog/a-chat-with-chatgpt-on-the-method-behind-the-bot
[12] Simone Puorto, Selected Writings on Metaverse, AI and NFT - A Guide to the Next Iteration of the Internet, United Robotronics, 2023.
[13] Simone Puorto, Selected Writings on Metaverse, AI and NFT - A Guide to the Next Iteration of the Internet, United Robotronics, 2023
[14] https://hoteltechreport.com/news/chatgpt-for-hotels