*By Claudio Cordeiro
Since the beginning of the year, the big talk in the world of technology has been the impressive capabilities of the new generation of Generative Artificial Intelligence tools, such as ChatGPT. In a booming market, all sectors of the economy are asking themselves the same question: how will these tools – which still have a lot to evolve – impact each segment, activity and process? Nothing is definitive yet, but the impact on the hospitality sector will undoubtedly be immense.
This is not exactly new, after all the use of AI in the segment has been growing for at least a decade, whether in improving the guest experience or in the use of data in strategic actions. But until then, these were more specific actions, now we will be able to see a greater impact, for example, on the workforce.
Big names in the market are already looking at the issue closely, such as Booking CEO Glenn Fogel. In a post on Linkedin, Fogel stated that Booking has been using various AI tools for many years with the aim of eliminating difficulties during all stages of a trip, and that, at this moment, his team is exploring the best uses for the new generation of Artificial Intelligence. Their vision is to somehow recreate the interaction and personal touch of the days of traditional travel agents through cutting-edge technology.
The use of AI to, for example, give personalized recommendations to travelers and perform translations instantly is already a reality. But, in Fogel's view – and I agree – the potential for the future is much greater. Think, for example, how AIs can predict potential problems during a trip and intervene with real-time solutions. This kind of thing is a dream for hotel managers – and guests too –, but this is not a close reality. It takes a little patience and takes advantage of this time to get to know and explore existing tools, understand how they work and what they are already capable of doing.
In my view, we are still in this “test and error” phase, as there are still challenges to be overcome so that we can make full and safe use of AI. One of the main obstacles is certainly the quality of the database used by these solutions. ChatGPT, for example, uses a database only until 2021. Furthermore, AI tools are still unable to distinguish whether information is reliable or biased, which represents another point of attention for users.
It is also worth remembering that most hotels are still quite far behind in their basic digital transformation processes, even with a notable acceleration in recent years. Many hotel properties work with old systems (many do not even have a management solution), which have not incorporated the great advances in usability, interface, mobility and other factors that we have had in the last decade. That is why it is essential to invest first in more basic and fundamental technologies to create the foundation that will support innovations such as AI, IoT, BI and so on.
Even with all the good expectations regarding the use of Artificial Intelligence in the hotel industry, there are important steps that still need to be taken, both by hoteliers and by developers of generative AIs. The time is to separate the hype about these tools and put our feet on the ground, investing in the infrastructure so that all this potential is possible.
I do believe that the tourism and hospitality sector has a lot to gain from advances in Artificial Intelligence, but I am also realistic about the speed of technology developments in the sector: now is the time to familiarize yourself with AI and take a critical look at understand what she can or cannot do. One thing is a fact: it is worth paying attention to the next movements in innovation. Those who didn't get ahead in the first digital revolution suffered, so common sense dictates not repeat the mistake now!
*Claudio Cordeiro, Director of Hospitality Products at TOTVS
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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