Hotel Owners Caution Using AI Risks 'Cheapening' Guest Experience

The artificial intelligence revolution has taken the economy and the commercial real estate industry by storm, but hoteliers are pushing back, banking on human connection to keep guests happy.

The uptick in businesses using AI to cut costs and improve efficiency in the workplace has increased fears that the technology will replace human labor en masse. But while AI has the ability to take over the check-in process and communications with guests, the trade-offs might not be worth it, hotel executives said at Bisnow’s Florida and Caribbean Hotels and Hospitality Summit on Tuesday.

“You see some companies trying to do this. Trying to replace the human connection with [AI], I think, is a mistake,” Davidson Hospitality Group Chief Operating Officer Jason Reader said. “When you start to commoditize service, you're basically cheapening the experience.”

AI spending in the hospitality sector jumped 250% in 2025, according to a Rackspace Technology report. Nearly 80% of hotel chains are using AI, and nearly 90% plan to expand their use within the next two years, according to a 2025 h2c study. 

The most common implementations are chatbots, but AI-powered agents can take over basic tasks, including first impression-oriented experiences like the check-in process, key card activation and answering common questions about the hotel and its location.

The market for self-check-in and check-out kiosks is expanding, increasing to more than $2.5B in 2026 and expected to reach nearly $5B by 2032, according to Research and Markets. Hotel software management system Mews reported 30% of guests check in via their kiosks — which can cut check-in times by a third.

Some hotels are experimenting with mobile robots that can navigate elevators and hallways to deliver service items or commercial cleaning robots for lobbies, corridors and guest rooms.

While the technology can operate faster than humans and increase productivity, it removes the experience of guests connecting with employees and being able to have a unique conversation that creates a memory of hospitality, speakers said at the event.

“I think it's very cool, it's a nice little gimmick, but it doesn't translate to that kind of experience that you're looking for,” Faena District Miami Beach General Manager Said Haykal said onstage at the Hyatt Regency in Downtown Miami.

Even so, for many front-desk workers, the automation of these routine tasks, at a time when labor is one of the largest costs for hotel operators, can be a threat.

Haykal recalled feeling that fear when he first started in hospitality as a front-desk worker.

“I remember the first thing I read within my first couple of months was that they were gonna have robots start doing check-ins,” he said. “At first, I was like, ‘Wow, my job's gonna be eliminated before I even begin in the career.’”

Technology can also make it harder to differentiate the consumer experience in a market where thousands of hotel units are planned. In Miami-Dade alone, 98 hotels are in the pipeline, which would add more than 20,000 keys, Miami Today reported in January, citing CoStar data.

It has become standard for guests to receive an arrival email, a text after check-in and another text through their stay. But AI can't place a sweet treat in a room with a note thanking the guest for their stay, said Reader, who works with brands like Aloft Hotels, Canopy by Hilton and Autograph Collection Hotels.

"That's going to go a lot further than just a generic text that says, 'How's your stay so far?'" Reader said. "So, I think that genuine, authentic, personalized service still wins every time."

Some are finding the balance between technology and human connection.

Patrick Fernandes, managing director of Carillon Miami Wellness Resort, said the introduction of robotic massages in the wellness sector for hospitality can elevate spa service. The hotel uses a "vast array of technology" for its wellness services, he said.

"We understand how to complement that with traditional services and not just leave you with the robot for your entire day," Fernandes said. "Because that can be done, it reduces our cost, but it doesn't make a meaningful outcome for the guest experience."

AI is most useful on the back end, especially as operating costs remain the largest challenge for hotel owners, according to the American Hotel & Lodging Association.

It can be used to compile months of guest reviews and provide a suggested list of improvements, Reader said.

Or, it can be used to understand the kind of guest they are catering to — whether it is someone traveling for business or leisure, said Maurizio Piedra, IHG director of development for the Caribbean and Central America.

"The No. 1 concern is exactly this: How do we operate more efficiently?" Driftwood Capital Managing Director Alinio Azevedo said. "How do we use technology better? How do we use AI better?

"Because not doing anything is not going to save us. The cost pressures are real at the top of the market."