Six Ethical Questions to ask When Using AI in Hotel Operations
Reza Etemad-Sajadi: “If a robot replaces certain tasks of an employee, how does the company commit to transforming the skills of its employees?”
By Reza Etemad-Sajadi and Antonin Soussan, 10 April 2023
As the world has awakened to the dawn of ChatGPT, AI has become a trendy topic in the space of just a couple of months. For many people, ChatGPT was the first AI tool they could really use—and it came as a shock.
At EHL Hospitality Business School, we have been investigating the potential applications and implications of AI within the hospitality industry for several years. These technologies can mimic the ability of the human mind, such as learning and problem-solving, and can be used in the hospitality industry to improve the guest experience, optimize operations and drive revenue. They enable hotels to make data-driven decisions, personalize the guest experience and automate repetitive tasks.
With the use of AI, hotels can automate and optimize tasks such as maintenance, housekeeping, transportation as well as reception and room service. The goal is to improve efficiency and at the same time to reduce costs. Pepper, a well-known robot from SoftBank Robotics capable of interacting with guests and assisting with tasks such as check-in and check-out, is a good example of how AI can be implemented in a hotel’s day-to-day operations.
These technologies enable hotels to enhance the guest experience. This can be implemented at every phase of the guest journey. Before the purchase, during the stay, or after, the client can use chatbots that are able to simulate conversations with human users through text or voice interactions. In the end, the guest should receive fast and personalized recommendations.
It is evident that AI will become a fundamental aspect of daily business operations. However, as professionals, we are left with the question of how to adapt the workforce to these new practices. Emotional intelligence, which encompasses a range of competencies such as managing one’s own emotions and the emotions of others, has been identified as the most crucial skill set for hospitality employees. Despite the influx of new technologies, emotional intelligence remains a crucial attribute in the industry.
Customers, particularly the younger generation, have elevated their expectations for top-notch service levels integrated with technological solutions. Presently, AI can only be programmed to respond to specific inputs. On the other hand, employees can display better empathy and kindness than any machine built to-date through their soft skills, allowing them to adapt to various situations without requiring training. Nevertheless, employees possessing high emotional intelligence will also need to be tech-savvy to monitor all the AI tools implemented in the industry.
The challenge is to ensure that companies integrate AI in a fair and equitable manner. We have identified six major ethical dimensions to consider:
1. Replacement If a robot replaces certain tasks of an employee, how does the company commit to transforming the skills of its employees?
2. Data protection: What data is collected through digital touch points and how is it stored/used?
3. Responsibility If a machine responds to customer requests in real-time, who is responsible in case of a failure?
4. Trust and security How can a machine guarantee the safety of users who interact with it through its algorithms?
5. Social presence and degree of “humanization” How to establish a healthy social connection with a machine or a robot?
6. Autonomy To what extent can a machine make decisions without human control?
This highlights the importance of hospitality schools teaching both hard and soft skills to prepare future employees with the necessary expertise to utilize, monitor and evaluate technology applications in the industry. As a result, the workforce will experience a significant shift, requiring managers to provide thorough training for their current staff.
Many companies are engaged in this digital transformation and automation to reduce costs, create an original customer experience or improve productivity. The challenge is to find a win-win balance where the company reduces its costs, adapts the activities of its employees, and at the same time, the customer feels the added value in using this technology. The societal impact of this transformation is likely to be significant in the coming years, and these ethical questions will be at the heart of discussions.
ABOUT THE EXPERT
Associate professor Reza Etemad-Sajadi teaches at EHL Hospitality Business School. His areas of expertise include CRM, customer experience, human-machine interaction, international marketing, service marketing and strategy marketing. He pens this Expert View article with the help of his assistant Antonin Soussan – not ChatGPT