Overview

AI works by leveraging advanced algorithms and machine learning techniques to analyze vast amounts of data and make intelligent decisions. This requires a substantial amount of data and processing to train the application to perform the necessary task and operate independently.

While larger hotel brands may be investing in these developments in-house, most of these solutions are sold to hoteliers by third-party developers who specialize in creating and implementing tailored AI technologies.

Improving Guest Experience

The most widely adopted AI solutions in hospitality are those that enhance the overall guest experience. These applications generally fall into two main categories:

*Guest Services

Tools like chatbots and virtual assistants provide 24/7 support, answering questions and fulfilling guest requests. This allows your hotel staff to focus on more critical operation tasks. These chatbots have become so prevalent that IBM predicts they will handle 30% of customer service interactions by 2030.

*Personalized Experiences

AI systems analyze guest data to offer personalized recommendations, tailored experiences, and customized services. These solutions go beyond simple suggestions, adapting amenities and services to match guest preferences.

For example, Marriott International has been experimenting with AI assistants in rooms that control lighting, temperature, and entertainment systems through voice commands, providing a highly personalized stay.

Streamlined Operations

Another rapidly growing subset of AI applications in the hospitality industry focuses on streamlining in-house operations. Hoteliers worldwide are leveraging AI-powered tools to enhance and refine daily operations in key areas such as:

*Efficiency

AI tools optimize resource management and enhance overall operational workflows. By leveraging predictive analysis, AI-driven applications like inventory managers integrate with existing reservation systems to accurately forecast when to restock guest toiletries and linens. These tools are also invaluable in staff scheduling, particularly for housekeeping, as they can predict demand and create more accurate schedules.

*Sales & Marketing

Trend and revenue analysis is nothing new for hoteliers, but new AI solutions have significantly enhanced and refined these efforts. Like operational inventory managers, hoteliers now use AI-powered forecasts to generate more accurate predictions of future revenue per available room (RevPAR). Marketing has also become more personalized, with AI leveraging guest data to send tailored offers and recommendations, ultimately driving higher engagement and satisfaction.

Risks

When examining the risks of using AI solutions in your hotel, it’s easy to imagine an apocalyptic, Terminator-style future. However, more immediate risks often lie in cyber and data security.

AI tools require vast amounts of data—sensitive or otherwise—to learn and perform their desired functions. While hoteliers may have a robust cybersecurity infrastructure to protect this information, involving third-party AI vendors, the increasing use of connected devices (IoTs) and the novelty of these solutions introduce unprecedented layers of risk.

*Third-Party Vendors

Relying on third-party AI vendors means entrusting them with sensitive guest and operational data. Even with stringent contracts and security measures, there is always the risk that these vendors may not have security protocols as rigorous as your hotel’s. Data breaches at a third-party vendor can compromise your guest information, leading to severe reputational and financial consequences.

Minimizing the risk associated with third-party vendors is crucial. Just like any other provider, AI solutions should be vetted through a thorough vendor assessment and managed with strict access controls, limiting their data access to only what is necessary.

*Internet of Things (IoT)

The proliferation of IoT devices in hotels—from smart thermostats to voice-controlled assistants—creates additional entry points for cyberattacks. Each connected device can potentially be exploited if not properly secured.

To minimize these vulnerabilities, ensure all IoT devices are regularly updated with the latest patches and firmware updates. Additionally, network segmentation can diminish the chance of a breached device accessing your entire network.

*The Unprecedented and Unknown

The AI frontier remains largely uncharted, introducing novel and unprecedented risks. This is particularly true for many public applications such as virtual assistants and chatbots.

The internet is already filled with stories of hackers retraining these systems through their interactions to manipulate responses and exploit vulnerabilities. Because it is so new, there is no way to predict every susceptibility that may lie within. However, staying informed and up to date on the latest AI security threats is critical to mitigating this risk of the unprecedented and unknown. On top of that, regular monitoring of AI applications and their customer interactions will prove paramount in minimizing these unforeseen threats.

Conclusion

The practical benefits AI brings to hoteliers are revolutionary, enhancing guest experiences and streamlining operations. However, it is crucial to consider potential risks, especially in cyber and data security.

Feeling overwhelmed? Don’t be. VENZA is here to help. As hospitality data protection experts, our Security Team skillfully navigates hoteliers through the complexities of managing risks associated with new technologies like AI. In partnership with us, your company can get started in as little as one month.

Ready to get started? Contact Sales to discuss signing up for our programs or adding new solutions to your contract.

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Take VENZA’s free Phishing Test to assess gaps in your human firewall today!

Training your personnel to recognize and report phishing attempts is essential to protecting your guests and their data. Get started by determining your risk and readiness level using this free tool.

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