Is Generative Al Over-Hyped or Does It Have Real Business Value?
For the past year, generative AI has been everywhere, but is it all hype? I set out to explore this question with HSMAI Marketing Advisory Board at a recent meeting. There were mixed opinions in the room, highlighting both the potential and the challenges of integrating AI into the hospitality sector.
3 Key Suggestions from Our Discussion:
- Invest in AI Education and Understanding
- Develop Clear AI Policies and Guidelines
- Foster a Culture of Collaboration and Knowledge Sharing
AI’s Promise and Pitfalls
Our discussion revealed that some still view AI with a degree of skepticism, concerned about the hype and possible limitations of the technology. Others, however, see immense promise in AI’s ability to revolutionize various aspects of hotel operations. This divide underscores a broader need for more education and understanding of AI’s capabilities and limitations.
The key challenge lies in balancing the opportunities AI presents with the risks it carries, particularly concerning data privacy and regulatory compliance. Adopting AI isn’t just about harnessing new technology; it’s about doing so responsibly. This requires cautious, informed approaches, coupled with clear guidelines and policies that mitigate potential risks while maximizing benefits.
One consensus among participants was the vital role of continuous learning and knowledge sharing. To effectively leverage AI, hotel executives and staff need to understand its complexities and stay informed about the latest developments. This involves not just individual learning but also fostering a culture of knowledge sharing and collaboration. Regular discussions and exchanges of best practices can help create a more informed and prepared industry, ready to harness AI’s potential.
As technology continues to rapidly improve, these insights can help set us up for success and make informed decisions about integrating AI into our organizations.
Further Reading:
- Economic potential of generative AI | McKinsey
- Noy_Zhang_1.pdf (mit.edu)
- Goldman Sachs Research Newsletter
- Gartner Places Generative AI on the Peak of Inflated Expectations on the 2023 Hype Cycle for Emerging Technologies
About The Hotels Network
The Hotels Network is an inventive technology company working with over 20,000 hotels around the globe. Boasting an international team of specialists with deep expertise in hospitality, product design and consumer marketing, the company offers clients a full-stack growth platform to power their direct channel. By leveraging a series of integrated tools and analytics, hotel brands can attract, engage and convert guests throughout the user journey.
In addition to price comparison, reviews summary, and a suite of personalization options, THN's Direct AI Suite is deeply integrated in their platform, from predictive analytics to generative AI. Predictive Personalization uses machine learning to predict user behavior and automatically tailor messaging and offers for each user. BenchDirect's benchmarking tool provides unmatched competitive data for the direct channel. Recent innovations include KITT, an AI-powered receptionist, and Loyalty Lite, a seamless guest login tool for personalized booking experiences.
THN is proud to have been recognized for the company's product innovations, rapid growth, and unique workplace culture for the second year in a row, most recently named the Best Direct Booking Tool for 2024 in the prestigious HotelTechAwards.
For more information about THN, visit https://thehotelsnetwork.com/en or contact [email protected].