As we close out a transformative year, Peter Moore, CEO and founder of Lolly, shares his thoughts on 2024’s key trends and innovations while looking ahead to the opportunities and challenges that 2025 will bring.

Reflecting on 2024

In 2024, the hospitality sector took significant steps forward in leveraging big data for commercial gain. Historically, managing and interpreting data has been a challenge for the industry, but the rise of AI tools enabled businesses to make data-driven decisions with greater efficiency. This year marked a turning point, with machine learning algorithms driving meaningful change and generative AI gaining traction across sectors.

While the advancements are remarkable, they represent only the beginning of a much larger journey. AI’s rapid evolution is challenging the boundaries of Moore’s Law - named after Intel co-founder Gordon Moore, which states that the number of transistors on a microchip doubles approximately every two years, making technology faster and more efficient. Now with innovation outpacing human adaptability, it is suggested that Moore's Law is no longer applicable in the modern era. Creating a need for new approaches to how we think, work, and collaborate is more evident than ever.

AI: beyond automation to collaboration

2025 will see the emergence of transformative AI-powered technologies designed to enhance efficiency and profitability. Businesses will need to embrace this change—both by adopting new tools and rethinking traditional working practices.

AI’s capabilities will continue to evolve, enabling businesses to predict consumer requirements with precision. By leveraging historical and real-time data, companies can create personalised upselling opportunities and influence purchasing decisions more effectively. This marks a shift from automation to a deeper collaboration between humans and AI.

Cybersecurity advances: the importance of staying one step ahead

As AI tools become increasingly mainstream, they also bring heightened cybersecurity risks. Businesses must address concerns around data privacy and potential vulnerabilities posed by these readily available technologies.

Proactive measures are critical to staying ahead of evolving security challenges in the industry. Implementing robust protocols and adopting open development frameworks allows businesses to confidently embrace the latest innovations while maintaining data integrity and operational security.

Sustainability and the changing landscape

Sustainability continues to be a critical focus, with Gen Z and Gen Alpha driving heightened expectations. For these generations, sustainability starts at the point of purchase, with real-time data playing a key role in promoting transparency and accountability.

Hospitality businesses must ensure that their operations reflect these values, from minimising waste to maintaining CSR-conscious policies. As 2025 unfolds, keeping sustainability practices current will be crucial to meeting consumer demands and regulatory requirements alike.

The Metaverse, AR, and VR: creating enhanced experiences

While still emerging, the metaverse, augmented reality (AR), and virtual reality (VR) offer vast potential for hospitality. These technologies can deliver dynamic, immersive customer experiences, providing opportunities to engage future consumers like Generation Alpha, who will soon enter the purchasing cycle.

The challenge lies in adopting a forward-thinking mindset, with businesses preparing now for what will likely become a defining trend in the medium to long term.

As we move into 2025, it is vitally important for businesses to continue navigating the possibilities of AI and beyond, ensuring they see real return on investment. Innovation is no longer just about automation—it’s about collaboration and creating tools that truly make a difference.