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The Influence of a Digital Worker Through Automation and AI in the Hospitality Industry

By Dr. Ajay Aluri Founding Director & Associate Professor, Nemacolin Hospitality Innovation and Technology | November 2025

The concepts of automation and Artificial Intelligence (AI) have been around for decades, but their actual adoption and application are currently being used and applied successfully in the hospitality industry.

Digital workers, software robots designed to perform tasks that are repetitive in nature, usually executed by human workers, such as data entry, data extraction, form completion, transaction processing, file movement, and more, offer high-tech digital solutions that enhance much-needed operational efficiency. While the terms’ automation’ and ’AI’ are often used interchangeably by both professionals and academic researchers, it is crucial to establish clear standards when employing different levels of automation and AI in the hospitality industry.

This article outlines the standard levels of automation achieved through the integration of Robotic Process Automation (RPA) and Intelligent Process Automation (IPA) with AI. Additionally, insights from a few case studies that have integrated full automation are examined to assess their impact on operations and guest experiences.

The hospitality industry, particularly the lodging sector, continues to face staffing challenges, with 65% of hoteliers reporting shortages as of March 2025, according to the American Hotel and Lodging Association’s (AHLA’s) State of the Industry Report. Apart from staffing challenges, this report addresses the trends in generational shifts, rising expectations of personalized services, and opportunities to deploy AI and refine the value proposition while enhancing guest experiences and loyalty (AHLA, 2025).

Considering these trends, it is vital for the hospitality industry to first automate specific functional areas, enabling employees to effectively and efficiently meet the changing needs and expectations of guests while maintaining a high-touch, authentic service culture. Apart from deploying AI, the lodging industry can focus on the use of full automation, where specific functional systems can perform all routine tasks under all conditions without any human intervention. Suppose the hospitality industry can fully automate these routine, rule-based tasks with precisely defined rules with predictable patterns. In that case, we can achieve greater success in deploying AI and training data in these areas more efficiently.

Automation vs. AI

While the concept of automation is widely used across the hospitality industry, the standards for automation are established by the Society of Automotive Engineers (SAE) and can be widely adopted across the service industry. According to SAE (2021), at Level 0, there is no automation, and humans are responsible for performing tasks, which can be translated into high-touch, face-to-face services. At Levels 1 and 2, there is either human assistance or partial automation, where the system can assist and control, but humans must remain engaged and attentive to monitor and take control as needed. At Levels 3 and 4, you are setting up a conditional and high-automation system, where the system can perform all tasks under specific conditions, but humans must be available to take over and intervene outside these particular conditions.

Finally, at Level 5, which is characterized by full automation, a system can perform all tasks under all conditions without requiring any human intervention. These levels of automation can be applied across the hospitality and broader service industries to standardize automation and clearly communicate the levels of high-tech automation, thereby enhancing operational efficiency and reducing the need for human intervention in high-touch guest services and experiences.

When it comes to integration and levels of AI, IBM Data and AI Team (2023) states that at Level 0, there is no AI, and human intervention is either needed to perform a specific task or it can be fully automated. Level 1, which is the stage we are currently in, is referred to as Artificial Narrow Intelligence (ANI) or weak AI, where the system can complete a specific task without human intervention. At Level 2, which is referred to as Artificial General Intelligence (AGI) or strong AI, we are entering the next phase of AI, where a system would be capable of performing tasks in part with another human.

Finally, at Level 3, which is referred to as Artificial Super Intelligence or Super AI, a system would surpass human intelligence. Both AGI and ASI are currently at hypothetical levels, as we transition from ANI to the early stages of AGI, which is the next AI boom. While hospitality is predominantly a people-centric business, where high-touch guest services and experiences are vital, the future integration of automation and AI is crucial for enhancing operational efficiency and personalizing guest experiences, considering the generational shifts and preferences.

RPA Vs. IPA in the Hospitality Industry

When investigating the use of full automation using Robotic Process Automation (RPA) in the hospitality industry, Aluri et al. (2025) found that digital worker solutions are utilized in contact center operations and the hotel accounting department. The use of a digital worker solution in a contact center operation has automated 50% of the reservation workload, enabling the processing of 20,000 monthly transactions while managing booking formats from multiple platforms and updating the Property Management System (PMS) with high accuracy. The digital worker solution in this case offered greater operational efficiency to the hospitality organization and its employees.

In the case of an accounting department in another hospitality group, the use of RPA saved 80% of the accountants’ time from performing repetitive data entry tasks, while consolidating and processing 700 daily reconciliations and managing a portfolio of 200+ hotels, which includes major chains and independent properties. While utilizing RPA efficiently, the Area Controller in this hospitality group was promoted, as she effectively integrated high-tech solutions into her team while maintaining a focus on high-touch customer service and building relationships that foster loyalty.

When integrating AI, using Intelligent Process Automation (IPA), apart from full automation, there is continuous learning of patterns while understanding context and adapting to changing inputs with the use of Machine Learning (ML) and Natural Language Processing (NLP). The use of IPA in the hospitality industry is in its infancy stage, as hospitality organizations are reporting the use of AI-driven group pricing, AI-enhanced segmentation to increase revenue and guest loyalty, AI-attribute-based booking to customize room features while dynamically pricing the packages, and the use of AI-sentiment analysis to process guest reviews and social media feedback and to improve service offerings.

While the use of conversational and agentic AI, as well as its integration among service robots, enhances guest services with multilingual capabilities and the ability to mimic human behavior and reasoning, these are a few examples of applications that will eventually deploy AI at a broader level to improve operational efficiency and personalize guest services and experiences.

Digital Worker, AI Agent, and Human Agents

Using RPA and full automation, the integration of digital workers in the functional area, as well as the combination of RPA and IPA, is crucial for the hospitality industry to optimize its operations and leverage the impact of human agents on high-touch guest experiences. The use of AI agents in conjunction with RPA is highly recommended, as early deployment and testing of AI will facilitate the training of AI agents to learn patterns from data and customer interactions, progressing from machine learning to machine intelligence with AGI and ultimately to machine consciousness with ASI. According to OpenAI, based on Metz (2024), the five stages of AI — ranging from conversational to reasoning, autonomous, innovating, and organizational — will genuinely enhance the importance of human agents and high-touch service culture in the hospitality industry.

While the use of digital workers, including those utilizing RPA and IPA, along with AI agents, will continue to emerge in the broader hospitality industry, it is vital to ensure that the use of AI augments human intelligence, especially in people-centric businesses, rather than replacing it. The concept of augmented intelligence, as proposed by Cremer and Kasparov (2021), is crucial for hospitality organizations to adopt and leverage digital workers and AI agents utilizing RPA and IPA, thereby enhancing operational efficiency and delivering personalized guest services and experiences without compromising the essence of high-touch and authentic customer service.

The human essence of hospitality and the people aspect of the business are at the heart of any hospitality culture that cannot be replaced by machines, but can help augment intelligence, allowing humans to focus on the people-centric aspects of hospitality services. As we move into the future phases of AGI, hospitality businesses will need to redefine and create new jobs while reskilling and upskilling their employees, with an emphasis on augmented intelligence and a focus on people-centric emotional intelligence.

References:

Journal of Hospitality & Tourism Cases. Aluri, A., Gupta, R., & Brown, E. (2025). Investigating the Impact of Automation, Digital Worker, and Artificial Intelligence on the Hospitality Industry .

American Hotel and Lodging Association March 2025 State of the Industry Report.

Harvard Business Review. Cremer, D.D. & Kasparov, G. (2021). AI Should Augment Human Intelligence, Not Replace It.

IBM Data and AI Team. (2023). Understanding the Different Types of Artificial Intelligence.

Bloomberg. Metz, R. (2024). OpenAI Scale Ranks Progress Toward ’Human-Level’ Problem Solving.

Society of Automotive Engineers. SAE International. (2021). SAE Levels of Driving Automation™ Refined for Clarity and International Audience.

Dr. Aluri

Dr. Aluri is an internationally recognized scholar, speaker, and thought leader in the fields of hospitality innovation and technology. He serves on the editorial and global boards of top, cutting-edge hospitality and tourism journals and organizations. He has been invited to speak at several international and national shows and conferences. Dr. Aluri has received numerous awards from global, national, and state-level organizations, including those from both academic and industrial sectors. He is the Founding Director of the Nemacolin HIT Lab, a platform to bridge the gaps between academic and industry research. He incorporates real-life projects based on issues that hospitality businesses face today, allowing students to gain hands-on problem-solving experience. Dr. Aluri's academic and research expertise combines all areas of his education and research interests, focusing on hospitality information technology and management, information systems, and the impact of these areas on international hospitality organizations, society, and education. Dr. Aluri played a vital role in developing the Hardy Family Hospitality and Tourism Management program at WVU. He is an Associate Professor at the WVU John Chambers College of Business and Economics. Extended Biography & Contact Information

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In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

Jungho Suh
Cara Silletto
Cleo Clarke
Theresa Hajko
Herbert Laubichler-Pichler
Erin Whitlock Brown
Robert Schnitz
Vaughn Davis
Brent Baudier
Allison Boccamazzo
Russ Spencer
Richard Oakes
Coming up in March 1970...