Privacy top concern in AI adoption for hotels, says survey

Data readiness, ‘over-dependence’ on technology other key reasons
2024-02-26
/
/ New Delhi
/ Hotels
Privacy top concern in AI adoption for hotels, says survey

52 pc of marketers cite privacy as top concern in AI adoption for hotels

A study of nearly 320 marketers of hotels has found that 40 pc have no “clear and actionable plan” in place for AI integration.
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A report on adoption of artificial intelligence by hotels has found that the uptake is slow due to various reasons, ranging from privacy concerns to issues like reluctance on over-dependence on technology or the absence of data readiness.

These are some of the findings of a report released by SOCi, a cloud platform based in San Diego, California. According to the report, Artificial Intelligence (AI) Marketing Transformation Index, 52 pc of marketers cite privacy as top concern in AI adoption for hotels.

In a press statement, SOCi says that when asked about their concerns regarding AI in marketing, “privacy concerns” topped the list at 52 pc. This was followed by “over-dependence on technology” for 46 pc, while “making data ‘AI-ready’” concerns 41 pc.

 Notably, “AI potentially replacing my role” concerns 36 pc while other concerns included integration with current systems for 35 pc and ensuring return on 30 pc, adds the statement.

Monica Ho

Monica Ho

“Privacy concerns often stem from how companies collect, store, and use consumer data for marketing purposes. With AI’s ability to analyse large datasets, there is an increased risk of sensitive information being mishandled or used in ways that violate consumer privacy. Establishing clear internal guidelines and policies around AI usage in marketing can help ensure ethical practices and compliance with laws,” says Monica Ho, CMO, SOCi.

As many as 36 pc of respondents said that their company did not have “a clear and actionable plan for AI integration into their marketing strategy,” while 10 pc said they did know where to start.

Alternatively, 40 pc said they have “a clear plan and are executing it well,” while one-quarter or 22 pc marketers admitted they had a plan but “are struggling with the execution.”

“Effective AI integration in marketing demands not just technological capability but also strategic clarity. Our study reveals a gap between awareness and action, underscoring an urgent need for a roadmap to better navigate AI adoption,” says Ho.

The report says that in terms of established usage and privacy guidelines for AI technology, 39 pc confirmed having guidelines in place, while 35 pc are currently in the process of developing these guidelines. However, 22 pc do not have any usage or privacy guidelines in place.

“Establishing comprehensive AI usage and privacy guidelines is paramount for businesses. It’s a crucial step not just for compliance but also for building trust with consumers and ensuring responsible utilisation of AI,” says Ho.

Notably, regarding resources needed for better AI integration, the most significant need was for “more time to understand and implement AI,” highlighted by 62 pc. This was followed by “more trained personnel” for 53 pc, “more budget” for 44 pc, and “clearer strategies from leadership” at 32 pc.

The report adds that regarding the ease of implementing AI, 25 pc marketers said using AI was difficult, for 3 pc it was “Very difficult,” for 22 pc it was “somewhat difficult”, while 40 pc had an easier experience. For 27 pc it was “Somewhat easy,” for 13 pc “Very easy”. The largest group, 35 pc, were neutral, indicating that a clear consensus on AI implementation ease is yet to be established.

Concerning resources needed for better AI integration, the most significant need was for “more time to understand and implement AI,” highlighted by 62 pc. This was followed by “more trained personnel” for 53 pc, “more budget” for 44 pc and “clearer strategies from leadership” for 32 pc, adds the statement.

“Today’s findings reveal a big gap in AI adoption for marketing. While 3-in-4 are confident in using AI, challenges like understanding AI, aligning it with marketing goals, and resource constraints persist. This calls for a strategic focus on education, planning, and resource allocation to maximize AI’s potential,” adds Ho.

The report finds that concerning dedicated marketing personnel for overseeing AI models, 39 pc have specialised staff, 21 pc do not, and 37 pc are in the process of training or upskilling their staff.

“Today’s findings reveal a big gap in AI adoption for marketing. While 3-in-4 are confident in using AI, challenges like understanding AI, aligning it with marketing goals, and resource constraints persist. This calls for a strategic focus on education, planning, and resource allocation to maximise AI’s potential,” adds Ho.

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