01 Aug AI and Automation in Hospitality: What’s Worth Investing in (and What’s Just Hype?)

The Promise (and Pitfalls) of AI in Hospitality

In 2025, artificial intelligence (AI) and automation are no longer buzzwords, they’re shaping how hospitality businesses operate. From AI-driven chatbots to automated rostering and predictive inventory management, the hospitality sector is being promised smarter operations, happier guests, and fatter profit margins.

But here’s the catch: not every shiny tech solution is worth your time or money. As a hospitality management consultant, I’ve seen firsthand where AI delivers real returns—and where it simply adds complexity without payoff.

So, let’s break it down. What AI tools are worth investing in, and which are overhyped in today’s hospitality environment?

1. AI-Powered Rostering: Worth It (With the Right Data)

Costed rosters have been around for years, but AI takes it to the next level by predicting staffing needs based on:

• Revenue forecasts
• Historical foot traffic
• Weather patterns
• Event calendars

Tools like Deputy, Tanda, and Workforce.com now integrate AI to recommend optimal shift times, flag overstaffing, and ensure Fair Work compliance. The key here is accurate data input—garbage in, garbage out.

ROI Insight: One client saved over $3,000/month in labour costs after switching to AI-assisted rostering that dynamically adjusted shifts based on real-time sales.

2. Chatbots and Virtual Concierges: Worth It for High-Volume Venues

AI chatbots can now handle:

• Bookings and confirmations
• FAQs (e.g., hours, menu, dietary options)
• Post-visit surveys and review requests

Systems like Sprout and Axify are helping venues cut down on admin time and improve guest experience.

However, bots work best when:

• You get a lot of customer enquiries
• Your staff are tied up with repetitive questions
• You integrate the bot with human support when needed

Hype Alert: Don’t overinvest in a bot that requires constant tweaking and adds little real benefit if your enquiry volume is low.

3. AI-Driven Dynamic Pricing: Potentially Worth It—but Tread Carefully

Airlines and hotels have long used dynamic pricing. Now, AI tools for restaurants and event venues promise to adjust prices in real-time based on:

• Demand
• Service periods
• Competitor pricing
• Inventory levels

BUT: Be cautious. Price-sensitive markets may resist, and without strong customer communication, it can feel like price gouging. It works best in delivery, peak-period pricing, or special event menus, not day-to-day dining.

4. AI for Inventory Management: Worth It for Multi-Venue Operators

Stock control software like MarketMan, OrderMate, and LightSpeed now use AI to forecast ordering needs and reduce waste. These systems track usage patterns and even recommend suppliers based on price or delivery time.

Results:

• Reduced food waste
• Lower stock-holding costs
• Fewer emergency supplier runs

For venues with complex menus or multiple locations, the ROI is clear. Smaller venues? It may be overkill unless your food costs are out of control.

5. AI-Powered Guest Experience Tools: Worth It When You Have Loyalty Data

Personalisation is the buzzword—AI can tailor promotions, recommend dishes, or automate email/SMS marketing based on past visits.

Platforms like SevenRooms, OpenTable Pro, and me&u are using AI to help venues upsell and retain guests.

The catch? You need a robust customer database. If you haven’t been collecting emails, phone numbers, or preferences, the AI has nothing to work with.

6. Overhyped: “Fully Automated” Venues Without Human Touch

In 2025, we’ve seen robot baristas, self-service kiosks, and AI-run kitchens. While automation can enhance service, it can’t replace hospitality’s human element—especially in Australia, where friendly service is part of the experience.

Venues that over-automate risk:

• Alienating regulars
• Losing upselling opportunities
• Failing at service recovery (AI can’t read emotions very well—yet)

Smart Approach: Use automation to support your team—not replace them. Think of tech that helps staff do more with less, not tech that takes them away from guests.

Tip: How to Evaluate Any AI Tool

Before you invest, ask:

1. What problem does this solve? (Labour cost? Guest wait time? Food waste?)
2. What’s the expected ROI? (Calculate cost savings or increased revenue.)
3. How much training is needed? (Will staff use it—or avoid it?)
4. Will it scale with my business? (Great for now—but what about 2-3 venues later?)

Final Thoughts: Focus on Practical Gains, Not Tech Hype

The best hospitality operators are tech-savvy but grounded. AI can absolutely help your venue be more efficient, profitable, and guest-focused—but only if it’s solving real business problems.

I recommend starting small, testing one tool at a time, and making sure your team is on board. The right AI tools will pay for themselves. The wrong ones? Just expensive toys.