A new study reveals that the overwhelming majority of hospitality business leaders are in favour of implementing Artificial Intelligence (AI) across the sector, with more than a third believing it will have a ‘transformational’ impact on their businesses and organisations. At the same time, just 2% of individuals say they are unconvinced by the opportunities AI presents.

This research, which comes from leading insights firm CGA by NIQ, in collaboration with Sona, the next-generation workforce management software experts, took the pulse of dozens of C-Suite executives from a wide range of hospitality companies, spanning restaurants, pubs, bars, hotels, and more.

The data also revealed that:

• More than half of business leaders (59%) are curious about the prospects of AI, but admit to needing more education and information on how it will play out
• A third (39%) are confident that AI will be transformational for the sector
• 100% of operators think AI will be valuable to the running of their business, with 38% seeing it as extremely valuable and 62% as somewhat valuable
• Only 17% of those polled claimed to be fully aware of how best to use it for their business, indicating there is a vast knowledge gap 

While there is enthusiasm for AI across the board, the research reveals there are nuances between large, multi-site operators and their smaller counterparts. Larger businesses are three-times more likely (22%) to have researched the benefits of AI for their business than those with less than 20 sites (7%), feeding into the narrative of an increasingly asymmetric market.

Ben Dixon, Chief Technology Officer and Co-Founder of Sona, said: “AI can be a massive boon for the hospitality sector, not to replace people or automate the intimate guest experience, but to enhance it and make it even more compelling and personal, both as an industry to work in and socialise in.

“The challenge for companies like Sona is figuring out how we can work with ambitious and curious business leaders to share our experiences, insight and expertise to help shape an AI-enabled future for the hospitality sector. We don’t have all the answers, as we are always learning too, but by working collaboratively as a sector we will get there quicker.

“While many businesses are already adopting AI, there are many more avenues that can be explored. Many have embraced enhanced scheduling and forecasting to drive team productivity and loyalty, but there’s even more potential in these areas. Pooling or deploying front-line teams across sites, spotting and retaining high-performers, providing upselling suggestions and rewarding good work are the areas that are perhaps not getting the attention they deserve, which means missing out on potential consumer spend.

“Investing in AI should be a no-brainer at this point, as it’s about saving money and, more importantly, driving revenue at a time when businesses need all the support they can get.”

The data indicates that a lack of technical skill within a business is the primary obstacle when it comes to AI adoption, as cited by 78% of survey respondents. This brings to light a skills gap that needs to be addressed and an opportunity for the sector to work more closely with data scientists and analysts, to develop thinking around AI strategies.

Conversely, concerns around privacy and data protection were only cited by 17% of respondents as being their main obstacle to implementing AI; and resistance from management (15%), frontline staff (7%) and customers (2%) are comparatively not seen as being problematic.

More than three quarters of respondents (76%) accept that hospitality is lagging behind other consumer-facing sectors when it comes to embracing AI, which reflects why the majority of business leaders (86%) are open to receiving third-party support and education on how AI can best be implemented into their day-to-day operations.

Sona and CGA by Niq are Peach 20/20 partners.