To feel the full benefits of AI, establishing trust is a non-negotiable
By Paul Hadida, General Manager, APAC GTM at SevenRooms
No technology since the inception of the internet has held greater potential to change the way we live, work and interact with one another than Artificial Intelligence (AI). By 2030, the already booming AI industry is set to balloon from USD $200 billion (~AUD $310 billion) to over $1.8 trillion (~AUD $ 2.8 trillion). Yet, while businesses invest more time and focus on AI innovation, public trust is wavering. In Australia, 86% of consumers have low trust in how businesses use AI – nine percent higher than 12 months ago – making it one of the most sceptical nations globally.
As AI is not only integrated into operations but becoming the foundation on which they’re built, it’s already playing a critical role in reshaping industries like hospitality. In fact, 85% of hospitality operators in Australia are already leveraging AI in one way or another. Whether it’s personalised guest experiences, predictive analytics for staffing or inventory management, AI is transforming how the industry operates. And we’ve only seen the tip of the iceberg.
In sectors like hospitality, where personalised guest experiences are non-negotiable, and how elite venues distinguish themselves from the crowd, this trust gap creates both a challenge and an opportunity. For AI to reach its full potential, hospitality brands must overcome the trust deficit, building transparency, ensuring data sovereignty, and reinforcing human interactions at every turn.
So, how can the establishment of trust be the foundation on which hospitality brands leverage AI?
Transparency generates trust
In hospitality, guests trust restaurants, bars, cafes and hotels with their sensitive personal information – from payment details to allergies. This trust must extend to how AI stores and safeguards that data. To be effective and, critically, ethical, AI must operate transparently. Venues must be clear about how they collect, use, and safeguard customer data, particularly when it’s being used to power AI-driven processes.
Just as privacy is non-negotiable at the dinner table, it must be non-negotiable when it comes to AI. Guests need to also know why their data is being collected and how their willingness to share it will be used to improve their experience. Whether it’s personalising the automated marketing they receive or streamlining their reservation process, guests must feel confident that their privacy is the first thought, not an afterthought. Being transparent about these practices cultivates a sense of security and establishes trust, which in turn provides a peace of mind that guests can engage with AI-powered systems without fear of exploitation.
By taking a proactive approach to data transparency, hospitality businesses can build long-lasting, mutually-beneficial relationships with their guests, who will know that their privacy concerns are prioritised. This clarity allows guests to engage with AI systems confidently, knowing that their data is being handled ethically, securely, and responsibly by a venue they’re more likely to trust.
Data sovereignty
The idea of data sovereignty, where guests are granted complete control over their personal information, is a critical pillar when establishing trust. In the hospitality sector, where personal information and sensitive data are frequently shared, businesses must ensure that guests can decide how their data is retained, accessed, and deleted. Guests shouldn’t be opted-in automatically, and they must also be able to remove their data.
When venues prioritise data sovereignty, and empower their customers with full control and authority over their data, they can establish trust. After all, personal information doesn’t belong to a venue or the AI; it belongs to the customer, who entrusts it to the venue to use responsibly – whether through AI or other systems.
Guardian of guest experiences
In hospitality, personalised, human-centric guest experiences aren’t optional, they’re essential. As a result, AI should never be viewed as a replacement for human hospitality and service. In hospitality, personal interactions are what make the guest experience memorable – they’re why we visit restaurants and other venues to enjoy special moments with our loved ones. When used correctly and underpinned by trust, AI can enhance these human elements without replacing them. The key is ensuring that AI supports the guest experience by streamlining operations and processes behind the scenes so operators have more time to focus on the authentic, human touch that guests expect.
In hospitality, AI gives operators – and their staff – the gift of time. It’s time they can dedicate to their menu and craft, their personal lives and their customers. In this way, AI isn’t replacing the personal connections and meaningful guest experiences that the industry is renowned for, it’s becoming the guardian of them. When the priority is creating ethical frameworks, removing bias, ensuring accountability, and safeguarding privacy behind the scenes, AI can be extremely beneficial for businesses and customers alike. AI can’t open the door, place a napkin on your lap or discuss the daily specials, but it can optimise operational efficiency and guide an age of SuperHuman Hospitality.
AI and the age of SuperHuman Hospitality
The hospitality industry stands at the threshold of a game-changing technological revolution; a revolution that is set to usher in a new golden age of SuperHUman Hospitality. AI has the power to reshape the industry, enabling venues to break free from the “rat race” of slim margins and high turnover. With the right approach, businesses can utilise AI to create unique, unforgettable guest experiences, streamline operations, and achieve lasting profitability.
With more than one in three (36%) Australian venues already using AI to analyse their data and turn it into actionable, growth-generating strategies, the potential applications are plentiful. For example, AI can analyse a venue’s reviews, not only replying in context, but identifying common themes and trends. If many reviews mention slow service, the venue can investigate and make necessary adjustments. Or, by analysing table management algorithms, it can provide actionable insights to help operators maximise capacity and minimise wait times. The benefits are limitless.
Yet, the key to truly unlocking this potential lies in trust. By prioritising transparency, championing data sovereignty, and preserving the uniquely human touch that makes hospitality such a crucial industry – both socially and economically – businesses can establish a foundation for AI adoption. With that, they can delight guests, empower staff, and boost their bottom lines, today, tomorrow and well into the future.
