The Reality of AI in Hospitality: Its Power, its Limitations, and the Ethical Considerations

Artificial Intelligence (AI) is certainly revolutionizing the hospitality industry, offering businesses automation, personalization, and operational efficiency. From chatbots answering guest inquiries to AI-powered pricing strategies, this technology has undoubtedly made significant inroads. However, amid all the enthusiasm, there are critical limitations that must be understood before entrusting AI with your guest experiences. AI is not an infallible beast; but rather, it is a regurgitative tool that operates based on patterns, not truth. This reality raises serious questions about accuracy, ethics, and the human touch in hospitality. I have been developing software solutions for over 25 years, so I have a deep understanding of this technology, its benefits may be amazing but you also need to be aware of its limitations.

Explaining AI’s Fundamental Limitation: Regurgitation Over Understanding

AI does not "think" in the way we humans do. It consumes vast amounts of data, recognizes any commonalities, and presents responses based on probability rather than actual correctness. AI has no means of identifying right from wrong, it is all based on what it has learnt. This means that if incorrect information has been repeated enough times across its data schema, AI will more often than not present that misinformation as fact. The implications of this limitation are particularly concerning in hospitality, where guest interactions require accuracy, personalization, and cultural sensitivity.

For example, an AI-powered concierge might provide guests with the most "popular" restaurant recommendation, even if that restaurant has changed ownership, received poor reviews, or is even no longer in business. Unlike a human staff member who can verify details and provide common sense recommendations, AI lacks contextual awareness. Similarly, if a chatbot is asked about check-in policies and has been trained on outdated information, it may confidently provide incorrect details—potentially frustrating and even alienating guests.

So Would You Allow a Human Staff Member to Alienate Guests?

Hospitality is inherently personal. It’s about making guests feel welcome, valued, and above all else understood. If a human staff member were to provide incorrect information, be dismissive, or fail to address a guest's unique needs, they would be held accountable. Yet, many businesses out there seem willing to let AI operate unchecked, providing responses that can be misleading or even offensive without appropriate safeguards. All this to save a few dollars but generate poor reviews with the guest unlikely to ever return!

Take language translation tools as an example, which we use extensively in our Orana software. While AI translations can be useful, they often lack nuance, leading to awkward or even inappropriate phrasing that could alienate international guests. If a front desk employee were to communicate in a way that unintentionally offended a guest, it would be addressed immediately. Why, then, should AI be given a free pass when it makes similar mistakes?

So Where Are Your Checks and Balances?

The deployment of AI in hospitality needs clear oversight. Businesses cannot simply implement AI solutions and assume they will function flawlessly. There must be mechanisms in place to:

1. Continuously Validate Information – AI should be regularly audited to ensure the data it uses is accurate and up to date. Hotel policies, local recommendations, and service offerings change frequently, and AI must be programmed to adapt accordingly. Checking it every now and then is simply not good enough.
2. Provide Human Escalation Points – AI should never be the sole point of interaction. There must always be an option for guests to reach a human representative, ensuring that complex issues or misunderstandings can be addressed with empathy and critical thinking. Never hide behind AI, your business will suffer and guests want to deal with humans.
3. Monitor and Correct AI Bias – AI models are trained on existing data, which means they inherit biases from that data. If AI recommends activities, pricing, or responses based on flawed historical patterns, it may inadvertently reinforce discrimination or exclusion. Hospitality brands must take responsibility for ensuring AI promotes fairness and inclusivity.

AI is simply a Tool, Not a Replacement

AI has a role in hospitality, but it should be viewed as an enhancement rather than a replacement for human service. It excels at automating repetitive tasks, streamlining operations, and offering initial support. However, it cannot replace human intuition, cultural awareness, or the genuine warmth that defines excellent hospitality.

Before you even consider entrusting AI with guest interactions, hoteliers and property managers must ask themselves: Would I accept this level of service from a human employee? If the answer is no, then AI needs refinement, oversight, and ethical consideration.

The future of AI in hospitality isn’t about blindly following trends—it’s about implementing technology responsibly, ensuring that innovation does not come at the cost of guest experience, which could ultimately cost you your business.

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