Hospitality is defined by high levels of customer service. Hotels, restaurants and other businesses have long held dear the theory that ‘the customer is always right’. The pandemic sped-up online adoption by both consumers and companies – retail ecommerce sales in the USA are tipped to exceed $1.06 trillion in 2022, an amount previously estimated for 2024 at its earliest. So how do hospitality companies retain their customer-first approach in an increasingly online world?
The use of AI and data in hospitality
Creating connections with potential and existing customers is key, and artificial intelligence is leading the way in providing meaningful engagement across digital channels. According to IBM, 35% of companies reported using AI in 2022, with a further 42% reportedly planning AI adoption.
For AI to build long-term relationships with customers, it needs to be ethically implemented. Amongst a myriad of regulations – such as the Data Protection Act, GDPR and a pending UK Data Reform Bill – companies need to be clear in how they collect, store and use data which drives their AI platforms, and keep their customer at the centre of their data policies.
How hospitality companies can implement ethical AI
The following ways can help hospitality companies ensure AI is being used responsibly to power business, whilst respecting the privacy and autonomy of customers.
Accountability is key
Compliance with data protection laws and regulations is essential, but so is being able to demonstrate that compliance. Build a culture of compliance.
When implementing AI, companies should consider the effects and consequences of its use, and be able to justify what AI models do. Training staff to understand how data is used (even at a basic, top-line level) helps an organisation be aware of any weaknesses around data. An environment focused on consistent learning and development also helps companies stay on top of trends and changing regulations.
Privacy first
AI has the ability to boost customer satisfaction and revenues for hospitality companies, but no business will succeed if they don’t have the trust of their audience. The best way to build this trust is to respect the fundamental human right to privacy.
A user’s privacy needs to be considered above all other objectives when building AI systems. 87% of people will not do business with a company if they have concerns about its data security practices; giving individuals control of their own data is not just in line with regulations, it helps build trust and is good for business.
Be transparent about data use and data processing
Think sustainably when collecting data: take only what is needed. Information such as how data is used, who sees and uses it, and the role of AI in processing the data should be easily accessible to customers. By showing a clear understanding of what data is needed for, companies help embed trust in their motives.
Store data securely
Hospitality companies should construct storage standards early in the process of adopting new technology. When storing data, consider using pseudonymisation which limits access to identifiable data even in the case of a hack or data leak. Pseudonymisation is where collected personal data is one-way hashed to make it unreadable by any individual. It can be used by AI systems to create profiles, allowing personalised digital experiences, but has no value or use on its own.
Reduce biases or discrimination
Artificial Intelligence is often thought to be less biased than people, however AI models are usually built by people, using business rules or similar input, to refine operating parameters. When setting up and running AI models, companies need to consider whether conscious or unconscious bias has found its way into algorithms. Establishing a threshold for what is deemed fair and unfair, and regularly check that algorithms and outputs aren’t impacted by any form of data discrimination.
The cornerstone of ethical AI and responsible data use is the individual. Whether building an AI platform or selecting a partner to work with, hospitality companies need to ensure their technology shares the industry’s key objective: putting the customer first.
