Hype vs. reality: How fast is generative AI changing travel?

Phocuswright highlights a significant divide surrounding AI, making it difficult to fully understand the technology's evolution

"On the one hand, AI is the most rapidly evolving technology in history," explained Mike Coletta, senior manager of research and innovation at Phocuswright. "However, human understanding and behavior evolve at a steady pace. While it's tempting to assume rapid change, AI can only advance as fast as humans can keep up."

Key takeaways

• It's important to distinguish between AI and GenAI. AI has been in use for decades and has already led to significant disruptions, such as in revenue management and personalization, according to Accor's Line Crieloue.
• By contrast, GenAI is a much more recent development. While it is progressing rapidly, there are still many improvements to be made, particularly in reducing hallucinations and training models for multilingual and multicultural contexts.
• Improving these models will take time, which will slow the introduction of fully automated applications such as customer-facing features and marketing solutions. However, once these advances are made, they will undoubtedly disrupt our industry," adds Crieloue.

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