Hospitality’s human touch in an age of AI

The rise of artificial intelligence (AI) has stirred both excitement and trepidation across industries, and the hospitality sector is no exception.

While forecasts predict that up to 300 million jobs worldwide could be displaced by AI advancements, the hospitality industry is confidently taking a contrarian approach, choosing to invest in human connection rather than automated solutions.

This decision is not merely sentimental; it is a strategic survival tactic.

A staggering 73% of guests have expressed a preference for human interaction during their stay, emphasising that the foundation of hospitality is built on something AI cannot replicate—genuine connection.

Lessons from robotic failure

The pitfalls of a robotic approach are illustrated by Japan's infamous Henn-na Hotel, or “Strange Hotel.” Once famous for employing an army of 243 robots, it ultimately decided to dismiss over half of them, as they created more complications than they resolved.

Guests were frequently frustrated, and operational efficiency suffered as a result. In this vein, research from Quicktext—a company focused on AI and automation in hospitality—reveals a shocking 100% failure rate for projects relying solely on AI, with their accuracy plateauing at a modest 60%.

“The lesson isn't that AI has no place in hospitality. It's that AI without humans fails spectacularly,” advises Sandra Kneubuhler, Managing Director for Sub-Saharan Africa at Radisson Hotel Group.

Facing a real crisis

What keeps Kneubuhler awake at night is the impending labour crisis: by 2035, the global demand for travel and tourism workers is projected to outstrip supply by 43 million people. The hospitality sector alone is anticipated to encounter an 8.6 million worker gap—falling 18% short of necessary staffing levels. Jobs that require human interaction and personalised service will necessitate an influx of over 20 million additional workers to keep pace with demand.

“Our industry already employs over 330 million people worldwide. The challenge isn’t attracting customers; it's finding and retaining staff. AI isn't the threat—it's the talent shortage,” she asserts. “This is why smart AI integration matters. By allowing AI to manage repetitive tasks, such as processing bookings and handling routine inquiries, we can free our staff to excel at creating memorable experiences.”

What AI can't replicate

According to Kneubuhler, the essence of hospitality lies in human nuances.

“A chatbot can confirm a reservation, but it can't read the exhaustion in a guest's voice and upgrade their room. AI may optimise housekeeping schedules, but it cannot notice a family celebrating quietly and arrange a surprise dessert.”

While statistics show that 70% of guests find chatbots helpful, a disconcerting two-thirds of them worry about the quantitative and ‘mechanical’ nature of these interactions.

“It's the warmth in a staff member's voice during a guest's challenges, the genuine smile, and the instinct to know when to engage or give space that transforms an ordinary stay into an unforgettable experience,” emphasises Kneubuhler.

Investing in people

This understanding underpins the Group's annual Career Fest—an initiative scheduled for 27-30 October 2025 aimed at recruiting and upskilling the next generation of hospitality professionals. The programme promises insights from industry leaders, skill-building workshops, speed interviews, and mentorship sessions.

Kneubuhler states, “But Career Fest is part of a larger industry transformation. Hospitality is forging partnerships with educational institutions, supporting government apprenticeships, and creating targeted training programmes. We’re not merely filling positions; we’re building careers rooted in purpose, growth, and meaningful connection.”

The enduring human advantage

As Kneubuhler so aptly articulates, “AI will reshape hospitality jobs, not eliminate them. The most successful hotels will harness AI to handle the routine, allowing people to deliver the remarkable. Technology drives efficiency, but only people create genuine hospitality.”

“While other sectors brace for AI-driven job losses, hospitality is preparing for AI-enabled career growth. That isn’t resistance to change—it’s recognition that our greatest asset has always been human. Every moment matters because people make them matter,” she concludes.

BUSINESS REPORT