AI in Hospitality: Today and Tomorrow

The hospitality industry has always been about people. Whether it’s the warm smile at the front desk, the personalised recommendations at a restaurant, or the barista who remembers your order, hospitality is built on human connection. Yet, artificial intelligence (AI) is emerging as a powerful force that is transforming this traditionally human-centric industry. From improving customer service to improving operations, AI is reshaping hospitality in ways that were hard to imagine even a few years ago.

In a recent presentation I gave on AI in hospitality at Fine Food Australia , I explored how the technology is being used today and the exciting potential for the future. By popular demand, here’s a written summary of the key insights from my talk.

What is AI?

AI is the simulation of human intelligence by machines, enabling them to perform tasks that usually require human cognition, such as understanding language, recognising patterns, solving problems, and even learning from experience. There are three types of AI:

1. Narrow AI (ANI): This is where we are today. AI systems that excel in limited domains—like chatbots, self-driving cars, or facial recognition—are examples of narrow AI.
2. General AI (AGI):AI systems that can perform any intellectual task that a human can. AGI would not only solve problems in specific domains but learn new skills and adapt to different tasks.
3. Super AI (SAI): : Though still theoretical, super AI would surpass human intelligence.

For now, we operate in the realm of narrow AI, but even within these limits, AI has already started making an impact—hospitality included.

Why Hospitality is Different

AI has been slow to take off in hospitality because the industry is unique. Hospitality is all about human interaction, making the experience special for each customer. Here are some challenges:

1. Human Focus: Every guest wants a personal experience, and AI has to fit into that.
2. Complexity: No two days are the same. Between orders, inventory, and service, things are always changing.
3. Food & Drinks: Preparing things that look and taste delicious often in real-time is challenging
4. Health and Safety: Food safety is critical. Mistakes can impact people’s health.
5. Perishable Goods: In hospitality, food has a short shelf life, making stock management tricky.
6. Thin Margins: Profit margins in hospitality are slim, so businesses are careful about where they spend.

How AI is Used Today

Even with these challenges, AI is already being used in hospitality. Some examples include:

1. Robots in Cafes and Kitchens

Robots like Cafe X baristas make coffee with precision, allowing human staff to focus on customer service. Meanwhile, Miso Robotics' Flippy cooks burgers and fries, working alongside staff to handle repetitive tasks in fast-paced environments.

Service and cleaning robots are also making an appearance, and most of us have probably seen them in action by now.

2. Smart Ordering

Starbucks uses voice-activated ordering through its app, so customers can place their orders by speaking. McDonald's digital menus change based on time of day, weather, or past customer preferences, driving sales and improving the customer experience.

3. Inventory and Waste

AI is great at forecasting. Starbucks Deep Brew AI predicts stock needs, cutting down waste and making sure they don’t run out of ingredients. Even IKEA has jumped on board, using Winnow AI to manage waste in their food courts.

4. Quality Control

At Domino's, an AI-powered pizza checker uses computer vision to ensure pizzas are made just right—checking ingredients and cooking quality before sending them out.

5. AI-Driven Hotels

In Japan, Henn Na Hotel is almost fully run by robots, from check-in to room service. While this level of automation isn’t for everyone, it shows what’s possible.

Future AI in Hospitality

As AI gets better, we’ll see even more innovation in hospitality. Here are some future possibilities:

1. Human-like Customer Service

AI assistants will soon handle complex tasks like changing bookings, processing refunds, and even making recommendations based on customer preferences, offering faster, personalised service across multiple platforms like phone, chat, and email.?

2. AI Venue Assistants

AI could monitor a venue in real-time, alerting staff if orders are delayed or if a customer needs attention. It could even recognise regulars, speed up service and improve the customer experience.?

3. Autonomous Teams

We may see more robots taking over tasks in the kitchen or on the floor, freeing up staff to focus on customer service.

4. Personalised Menus

AI will create hyper-personalised menus in real-time based on dietary needs, nutritional goals, or preferences. For example, it could recommend high-protein dishes for fitness-enthusiasts or suggest vegan options to returning customers.

5. AI-Powered Gardens

Sustainability is important. AI-managed gardens could help restaurants grow their produce, ensuring fresh and seasonal ingredients, while reducing the carbon footprint.

6. Immersive Dining

With AI, dining experiences could include virtual tours of the farms where ingredients come from or even interactive storytelling about the dish’s origin, enriching the customer experience.

7. Digital Twins

AI could create a “digital twin” of a restaurant or hotel, allowing businesses to test changes—like altering menus, staffing, layout or prices—before making real-life adjustments. This will help businesses avoid mistakes and improve customer experience.

8. Admin & Compliance

AI could take over much of the administrative burden, automating tasks like payroll, rostering, and ensuring compliance with regulations like the Fair Work Act. AI systems could track award conditions, manage shifts within legal limits, and alert management to upcoming health and safety checks. This would minimise human error, reduce admin costs, and keep businesses compliant with less effort.

Challenges and Concerns

Of course, AI comes with its challenges. Here are some:

1. Privacy & Ethics: AI often needs customer and other data to work well, which raises concerns about privacy & ethics.
2. Job Loss: Automation may reduce the need for some jobs, but it will also create new opportunities for those who know how to work with and alongside AI.
3. Loss of Human Touch: Hospitality is about people, and there’s a risk that AI could make things feel too mechanical. Balancing this will be key.
4. Bias in AI: AI learns from data, so if the data is biased, AI can make biased decisions. We need to ensure fairness in how AI is used.
5. Failure Risks: AI systems are not foolproof. If they fail, businesses need to be ready with backups.

It is no surprise that there is talk and need for regulation of AI. Regulation should be introduced; however, getting the balance between innovation and safety will be important.

How to Embrace AI

If you’re in hospitality and thinking about using AI, here’s a simple framework:

1. AI is a Tool: Like any technology, AI should support your business goals and strategy. Whether it’s improving service, cutting costs, or boosting efficiency, AI is a means to an end. Not an end in itself.
2. Be Human Centric: Hospitality is about people, and AI should enhance, not replace the human experience.
3. Stay Curious: Try new AI tools and see how they can solve problems in your business.
4. Involve Stakeholders: Bring your team, customers, and community into the conversation about AI. Listen to their concerns and involve them in the process.
5. Don’t Be Left Behind: You don’t have to be the first to adopt AI, but don’t ignore it either. The industry is changing quickly, and those who don’t keep up could fall behind.
6. Take Small Risks: Innovation comes with risks. Test AI in small areas, learn from it, and grow.

Final Thoughts

AI is already shaping how we live and work, and the future holds even more potential. AI offers hospitality businesses a unique opportunity to innovate. The key is to adopt AI thoughtfully, using it as a tool to enhance—rather than replace—the personal touch that defines hospitality. Now’s the time to explore how.