AI's Impact on Hospitality Management

Welcome to another edition of the Sustainable Intelligence newsletter.

This is where I try to explore the intersection of artificial intelligence and environmental sustainability. My mission is to share my observations across these core themes: AI for Good, Ethical AI, Sustainable AI and AI in Sustainability. I hope to inform, inspire and engage readers interested in the potential of AI to drive positive change for both people and the planet.

Here’s what’s in stock for you today:

• News Bite: Wall Street asks if the AI bubble has burst

• Deep Dive: AI's Impact on Hospitality Management.

• Tech Trend: Sustainability continues to trend for the right reasons

News Bite: Wall Street is asking - has the AI bubble burst?

Amazon’s recent earnings report has led to speculation that the AI bubble might be bursting. Concerns about heavy AI spending with little to show for it, along with challenges in its core business, caused Amazon's stock to drop nearly 9% on Friday. Similarly, Intel’s stock plunged 25% after announcing significant cost-cutting measures and layoffs, following substantial investments in AI.

These reactions indicate growing skepticism about the immediate financial benefits of AI. While AI holds long-term potential, short-term returns are uncertain, and investors are becoming more cautious. Major players like Amazon and Intel must now demonstrate tangible benefits from their AI investments to regain investor confidence.

Deep Dive: AI's Impact on Hospitality Management

In the last edition of Sustainable Intelligence, I shared my interest in exploring how businesses are truly adopting AI to address real-life problems. If you haven’t read it yet, please check out the article on how AI is aiding Asset Managers in their operations. Today, I will share my findings on how AI is helping hospitality managers in their operations.

In the hospitality industry, as in many others, the push towards sustainability is not only a moral imperative but also a strategic business decision. AI provides hospitality managers with powerful tools to understand and reduce their carbon footprints, optimize resource usage, and enhance guest experiences in an environmentally responsible manner.

A practical application of AI in hospitality is its ability to track and analyze emissions across various operations. For instance, AI can identify emission hotspots in energy usage, food services, and supply chains. Maya Harri, the CEO of Terrascope, highlighted in a Bloomberg panel discussion on sustainability that a hospitality group discovered through AI analysis that beef, despite being consumed less frequently than fruits, was the largest contributor to their emissions. This insight allowed the group’s managers to make informed decisions about menu planning, emphasizing low-emission food options without compromising guest satisfaction.

With guests increasingly eco-conscious, promoting green initiatives such as renewable energy, waste reduction programs, and sustainable sourcing becomes crucial. Managers can leverage AI-generated emission insights to market these initiatives more effectively to their customers. This not only enhances brand loyalty but also attracts environmentally minded travelers.

By integrating AI-driven insights into their marketing strategies, hospitality managers can reduce their environmental impact and create a competitive edge in the market.

Tech Trend: Sustainability continues to trend for the right reasons

This year, sustainability has evolved from a trend to a necessity, with over 75% of agencies and marketers across Europe prioritizing it. While the ad tech industry may not have the direct environmental impact of sectors like oil and gas, there is still significant potential for ecological initiatives and sustainable practices. How can businesses in various industries further integrate sustainability into their operations?

That’s all I have for you today.

That’s all I have for you in this edition of Sustainable Intelligence.

If you have any questions or feedback please use this form. I will try my best to respond to all your questions and feedback.

If want me to feature an article in the News Bite or Tech Trend sections, please get in touch and I will see what I can do to feature it.

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Thank you!

Emeka Ogbonnaya