Artificial Intelligence (AI) has been significantly reshaping the hospitality industry over the past decade. From luxury hotels to fast food joints, AI tools are affecting how services are delivered and how operations are run, ultimately having an enormous impact on the customer experience overall. But what does this digital transformation really look like?
EHL’s latest whitepaper, Artificial Intelligence in Hospitality, offers a comprehensive and evidence-based exploration of AI’s impact across the sector. Developed in collaboration with Swiss hoteliers and EHL experts, it blends academic insight with practical relevance to help industry professionals and hospitality stakeholders understand where AI is headed in this sector.
AI in Hospitality - A Promise or a Puzzle?
Over the past few years, curiosity around AI’s role in hospitality has skyrocketed. Hoteliers want to know: How will AI affect jobs, business models and the everyday running of hotels? How will it help them better serve their customers? Which technology should they use? According to the World Economic Forum’s Future of Jobs Survey 2025, a massive 86% of employers anticipate that AI and information processing technologies will transform their businesses by 2030. Almost half of organizations (49%) expect to pivot toward new AI-driven opportunities, with 47% planning to transition employees into new roles as AI disrupts traditional positions. While many employers will need new talent efficient in AI, 41% foresee workforce downsizing as automation takes hold.
AI’s Market Growth and Hospitality Impact
AI is not just a hype because it is a big business. The global AI market is projected to balloon from $93.23 billion in 2020 to $1,005.36 billion by 2031. Within hospitality, AI adoption is growing from $10.3 billion in 2020 to $110.6 billion forecasted in 2031.
In Europe, 13.5% of enterprises with 10 or more employees now use some form of AI technology. Marketing and sales (34%), business administration (27%), ICT security (up to 46% in large firms), and production processes are the main areas for AI deployment. Large hospitality organizations are leading the way; smaller players face steeper challenges in implementation.
Where Will AI Deliver Value in Hospitality?
A 2024 study by Canary Technologies surveyed 327 hospitality professionals worldwide. The verdict? Over 73% believe AI will have a significant sector-wide impact. HR, IT, and General Managers are the most optimistic, with more than 94% expecting AI to bring transformative change. More than 80% of respondents see AI reshaping pre-booking interactions and guest communications, paving the way for personalized, seamless connections.
But AI’s execution goes beyond streamlined guest messaging. Imagine multilingual chatbots fielding inquiries, automated check-ins and room assignments freeing staff for high-touch service and real-time recommendations tailored to guest preferences. For luxury hospitality, especially, the challenge is to preserve the human touch while leveraging AI’s efficiency.
Budget allocations tell another story: two-thirds of hotels with 150+ rooms dedicate at least 10% of their IT budgets to AI tools. Among properties with more than 500 rooms, 26% allocate over half of their IT spend to AI solutions. Smaller accommodation providers, by contrast, might lack an IT department altogether.
From dynamic pricing, demand forecasting, personalized guest interactions to streamlining recruitment, AI supports every stage of both back-end and front-end operations. Its integration enables smarter decision-making, operational efficiency and tailored experiences. In our whitepaper, we have conducted an in-depth analysis of each function to demonstrate the growing influence of AI within the hospitality industry.
Key hurdles identified include:
- Ensuring data privacy and ethical AI integration
- Managing staff concerns over job displacement
- Seamless system integration between AI tools and legacy platforms
- Critical evaluation of AI outputs to avoid bias and maintain trust
What Hoteliers Are Saying
The whitepaper includes direct feedback from hoteliers who are already using AI in their daily operations. Their experiences reveal both optimism and caution. Many see AI as a way to improve efficiency and guest satisfaction, but they also stress the need for thoughtful implementation.
Some hoteliers are early adopters, using multiple AI tools across domains like marketing, revenue, and operations. Others are just beginning their AI journey, focusing on one or two areas. This divergence suggests a growing gap between tech-savvy first movers and those still catching up—a gap that could shape the competitive landscape in years to come.
“To ensure successful adoption, AI needs to integrate seamlessly with the guest experience and enhance rather than replace human interaction where it is desired. In terms of AI challenges now and in the future, it is important to ensure that the information being served is unbiased and that users continue to think for themselves.” Claudia Beaufort, Chief Commercial Officer, Zermatt Hospitality Group.
The Human Touch Still Matters
One of the most consistent themes in the whitepaper is the importance of maintaining human-centered hospitality. While AI can streamline operations and personalize services, it cannot replace the emotional connection that defines great hospitality, especially in luxury settings.
Hoteliers interviewed for the study emphasized the need to preserve this human touch. They also highlighted challenges such as data privacy, system integration, and staff concerns about job displacement. Their advice? Invest in staff training and choose ethical AI solutions. Above all, ensure technology complements rather than replaces human service.
A full podcast season is available on this particular topic, recorded by the EHL Flagship Resilient Tourism team.
Collaboration and Critical Thinking
The future of AI in hospitality will depend not just on technology, but on collaboration and critical thinking. The whitepaper calls on hotelier associations, academic institutions, tech providers and stakeholders in general to work together to develop trustworthy use cases and share best practices. It also encourages hoteliers to reflect on their own adoption strategies. Are they choosing technology based on real pain points or simply chasing trends? Are they maintaining a human-centric approach or letting automation take over? These questions are essential for ensuring that AI serves the industry, certainly not the other way around.
AI Is Here to Stay So Let’s Shape It Wisely
AI is a powerful tool that, when used wisely, can enhance hospitality in ways we’re only beginning to understand. But it’s also a tool that requires ethical consideration and a commitment to preserving the human essence of service. For hoteliers, the challenge is not whether to adopt AI, but how to do so effectively. This whitepaper explores the key areas where AI can make a tangible difference. It also highlights the growing need for tech-savvy staff and offers practical insights to help hotels avoid the “Kodak syndrome” of standing still while the world moves forward. Whether a hotelier or a hospitality graduate, this EHL whitepaper invites you to explore the opportunities and challenges of AI in the industry today.
Download the full whitepaper to dive deeper into the insights and expert reflections that are guiding the next chapter of hospitality innovation.
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