Ian Cairns, our Sales Director, recently discussed with Intelligent CIO about how Artificial Intelligence is revolutionising the hospitality sector, and how businesses can make the most of its benefits.

As AI continues to dominate the news agenda, many hospitality businesses will be looking to ensure that they have the right capabilities and infrastructure in place to keep up with ever-evolving tech developments.

How has hospitality already embraced AI?

Many smart technologies in hospitality have become so commonplace that people may not even think twice about the tech they’re using. For example, ordering apps that provide service at the tap of a finger and contactless check-ins are now the norm in venues across the world.

According to TalkTalk Business’ own research, conducted in partnership with Don’t Be Shy, a large proportion of IT decision-makers (ITDMs) are eager to see AI adopted within their business. A staggering 92% believe that operations and supply chains within their business would benefit from AI making most day-to-day strategic decisions.

The appetite for this smart technology is clear. But businesses can’t enjoy the benefits of AI without the right foundations in place to support it. Factors such as connectivity and reliable network infrastructure play a crucial role in these revolutionary technologies. So, for the world of hospitality to truly make the most of AI and its potential benefits, businesses need to consider not only what this technology can offer, but what they need to have in place to embrace it.

Building supply chain resilience

Hospitality businesses rely on a steady and predictable flow of products to keep customers happy, but managing supply chains is an increasingly complex, and often stressful, task.

Supply chains are vulnerable to disruptive global events, including volatile geopolitical situations which can have potentially long-term effects. The on-going conflict with cargo ships in the Red Sea being targeted by Houthi rebels and causing a spike in fuel prices is an example, which has had an impact on the availability and distribution of goods across the global market.

Environmental considerations are also high on the agenda. Many businesses are seeking to minimise their carbon footprint and offer locally sourced goods where possible. Optimising supply chains while maintaining regionalised sourcing requires thorough planning, flexibility and agility.

With sufficient data powering its ‘thinking’, AI can keep supply chains resilient by anticipating potential issues and making automated adjustments within pre-set parameters. This can be done by helping business owners find alternative sources for stock to keep levels topped up and service flowing. It can also help to divert stock to alternative locations or warehouses to meet a surplus or reduction in demand, allowing businesses to continue providing a reliable and cost-effective service, and building trust amongst customers.

Forecasting demand

Ultimately, AI can minimise wastage and maximise profitability.

By analysing datasets drawn from various sources, AI can predict the customer numbers coming through the door and their demands once inside. For instance, AI has the potential to use previous experiences to recommend dishes, drinks and other offers that customers are more likely to enjoy.

This offer of a uniquely tailored service experience is a sure way to impress people and keep them coming back for more.

Of course, no AI can perform demand forecasting with 100% accuracy. There will always be curveballs that create unexpected surges or lulls. Nevertheless, AI-driven demand forecasting can be argued as the best way to foresee what comes next and a great way for businesses to ensure that they aren’t falling behind their competitors.

How can hospitality get the most out of its data?

AI is only as ‘clever’ as the data fed into it.

Hospitality enterprises generate huge datasets on a daily basis but, according to multiple estimates, around 80-90% of enterprise data is chaotic and unstructured, making it difficult to analyse.

With Machine Learning, however, AI can cleanse and tune even the most unstructured datasets by making assumptions and estimates to fill any gaps. The more an AI cleanses a particular dataset, the more it learns about the accuracy of its own assumptions and estimates – and the better it gets at assuming and estimating.

Hospitality businesses can utilise this technology to keep service flowing, making sure that their venues remain stocked with supplies. Predictability means efficiency, which means money and resources do not go to waste.

Through using AI technology, the hospitality sector can tap into masses of previously unused, ‘chaotic’ data to make significant gains in efficiency and customer experience.

Strengthening networks

Just as the quality of data matters, so does the speed at which it moves around a network. Fuelled by huge amounts of data, AI demands to be supported by a powerful and resilient network.

Traffic bottlenecks prevent an AI from operating at maximum efficiency. Security, too, is a key consideration, particularly when dealing with data gleaned from customers’ behaviour.

To optimise this technology, businesses need to ensure the right foundations are in place. This includes having access to an ultra-reliable, high-bandwidth network that is intelligent, secure and flexible. With this, hospitality businesses can really take advantage of the accumulation of data insights and intelligence.

Looking ahead

AI offers many promising benefits for businesses across the hospitality sector, creating more streamlined, efficient and reliable services for customers. If businesses want to keep up with their competitors, then investing in smart technologies is an important step to take.

To best prepare for the future of AI in hospitality, businesses need to ensure that their networks are smart, secure and resilient. Systems must also be flexible to meet the demands of technological advancements, while investment in future-proof connectivity solutions is key to maintaining a competitive edge in an ever-changing market. It’s the key to improving efficiency whilst elevating customer experience.

With a strong network, hospitality businesses can ensure that their needs are catered for – whatever tomorrow might bring.

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