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Future of Travel Pt 3: AI faces hurdles in tourism

Substantial investment demands and privacy concerns are among the challenges of implementing AI in travel, says a new OECD report.

While AI holds immense promise for revolutionising the travel and tourism industry, its implementation is fraught with challenges that demand careful management. The complexities of integrating AI into tourism range from technical hurdles to societal concerns, underscoring the need for balanced approaches to harness its potential.

This is a key finding in a new report from the G7 and the Organisation for Economic Co-operation and Development (OECD), titled Artificial Intelligence and Tourism.

Investment and infrastructure gaps

Adopting AI systems in tourism destinations requires significant investment in technology and training. Building the necessary infrastructure – like IoT devices and sensors to enable data collection and analysis – can strain budgets, especially in resource-constrained regions. Smaller businesses, particularly SMEs, often lack the capital and expertise to keep pace with these advancements, exacerbating inequalities in AI adoption.

Risks of over-reliance on technology

Incorporating AI into tourism raises concerns about over-dependence on technology, which can detract from authentic experiences. For instance, digital products and VR-based representations of cultural sites, while innovative, risk diminishing the appreciation of physical visits. This could impact funding for site preservation and the intrinsic value of in-person exploration, particularly in nature-based destinations.

Privacy and data security concerns

The reliance on extensive personal data for AI-driven personalisation and operational efficiency amplifies concerns about privacy and security. Sharing data across multiple service providers introduces vulnerabilities, necessitating robust regulations and secure systems to protect sensitive information. Without these safeguards, consumer trust in AI-powered tourism solutions may falter.

Social and environmental considerations

AI systems often influence tourist decisions, from destination recommendations to travel itineraries, raising the risk of homogenising experiences. Popular sites could see increased crowding, while less-visited locations remain overlooked, undermining efforts to distribute tourism benefits more equitably. Local service providers must reach critical mass in adopting AI solutions to realise their full potential, a challenge that requires extensive collaboration and capacity-building.

Labour market transformation

AI-driven automation in tourism could reshape the workforce, automating routine tasks such as room cleaning and check-ins, while creating demand for advanced skills like critical thinking and empathy. However, transitioning workers to these new roles necessitates significant investment in retraining, posing challenges for an industry already grappling with skills gaps. Ensuring that workers can adapt to AI’s impact while maintaining job security and fair working conditions is essential.

Balancing sustainability and innovation

AI offers tools to enhance the sustainability of tourism, such as optimising resource use and managing visitor flows. Yet, achieving these benefits requires deliberate planning to avoid unintended consequences, such as increased energy consumption from AI systems or neglecting local cultures in favour of efficiency.

Navigating the challenges

The journey to AI integration in travel is as complex as it is promising. Addressing challenges such as investment barriers, privacy concerns, and workforce transitions requires coordinated efforts among governments, businesses, and local communities. By prioritising equitable access, sustainability, and innovation, stakeholders can ensure that AI enriches the travel experience while preserving the essence of tourism for generations to come.

* This is the third in a series of articles based on the OECD report – ‘Artificial Intelligence and tourism’. Read the Future of Travel series here.

* Read the ‘Artificial Intelligence and tourism’ report here.

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