Embracing the new era: Artificial intelligence and its multifaceted impact on the hospitality industry

Abstract

The hospitality industry stands at the cusp of a revolutionary transformation spurred by the advent of Artificial Intelligence (AI). This paper explores the challenges and opportunities associated with AI integration in an arena historically reliant on the nuances of the human touch. The research illuminates the potential for AI to redefine facets of the hospitality experience, from augmenting customer interactions to refining service delivery and catalysing economic growth. It examines the potential for AI to infuse the hospitality industry with unprecedented levels of efficiency and personalised service while also addressing the complexities introduced by this digital evolution. The pivot towards AI is not without its impediments. Technological constraints, such as the significant investment required for the deployment of AI and the compatibility with existing systems, pose substantial barriers. Cultural resistance emerges from a workforce accustomed to traditional service norms, and ethical dilemmas surface over customer data use and machine-based interactions' impersonal nature. This research delineates these impediments, offering a panoramic view of the intricate dynamics. In dissecting the nuances of AI adoption, the study first harnesses a comprehensive literature review to pinpoint the pivotal factors at play. These variables are then intricately modelled through Total Interpretive Structural Modeling (TISM) analysis, which unravels the interdependencies and assigns a hierarchy based on driving and dependence power. This modelling facilitates a structured understanding of the challenges, setting the stage for strategic intervention. Validation of the TISM model ensues through MICMAC analysis, further refining the categorisation of factors by their level of influence. This dual-analytical paradigm affords a granular perspective on the factors that govern AI adoption, laying the groundwork for strategic solutions that are both nuanced and actionable. The results of the analyses reveal that while AI possesses the potential to disrupt the hospitality sector positively, its implementation requires a subtle approach that mitigates the identified challenges. In the wake of this analytical journey, the paper culminates with strategic recommendations designed to steer industry stakeholders through the AI adoption process. These recommendations stress the importance of a balanced approach that harnesses the strengths of AI to complement and enhance the human elements intrinsic to hospitality. This includes investing in employee training to work alongside AI tools, adopting transparent data practices to maintain customer trust, and fostering an organisational culture that embraces technological innovation while valuing human engagement.

Keywords

• Artificial intelligence (AI)
• Hospitality industry
• Customer interactions
• Total interpretive structural modeling (TISM)
• MICMAC analysis