The role of artificial intelligence (AI) is the the defining topic for business in 2025, and leisure and hospitality are no exception. Rich Robinson, Head of Hospitality & Leisure at Barclays UK Corporate Bank, explains why. 

Artificial intelligence has shot up the agenda of many hospitality and leisure businesses my team and I meet with. It’s clear there is a desire to learn more about AI, technology and data.

The underlying question we’re being asked is what does it all mean? The term AI can sometimes conjure up images of technology and robots replacing the workforce, however in reality, it’s far from being a replacement for people and instead can be used as a tool to enhance the capabilities of the personnel within companies, and optimising the customer experience.

Harnessing AI to help people become more productive is welcomed and embraced, so I’m pleased to see clients predominantly looking to use AI tools to remove some of the more monotonous tasks their employees have to undertake. This then can possibly free them up to concentrate on other tasks, particularly anything that enhances interaction with guests, clients and customers. To regard AI as simply a device for cost-cutting could be problematical and it should be seen as a way to create an improved customer experience and upskill employees.

At Barclays we’ve been using AI for some years – notably in customer support and fraud protection where it plays an important role at the bank – and against this backdrop we’re able to share the knowledge that we’ve accrued across numerous industries over the years.

The wider capabilities of AI has to a large extent been overshadowed by ChatGPT that can be used to create content. This is an example of a LLM (Large Language Model), which is just one small part of the AI landscape.

AI could be seen as this generation’s opportunity to drive a step-change in productivity in the same way that mobile and the internet has done previously. Although it is difficult to place a financial figure on the potential impact of AI a report commissioned by Microsoft calculates it could boost the UK’s GDP by £550 billion by 2035. 

Recently I’ve seen AI-enabled technology being used out in the field. Across the hotel industry for example, I’ve seen operators make use of cloud-based voice services in hotel rooms and the exploration of mobile positioning technology to identify an approaching guest to automatically check them in ahead of their arrival in reception.

Whilst in travel, AI and machine learning continue to demonstrate their potential to transform the sector. Operators can use these technologies to better meet travellers’ needs throughout the customer journey – from planning and booking through to in-trip experiences – by offering information, emergency assistance, recommendations, translations and other interventions in real time, among many other applications. Combined with the right transactional data, many travel businesses we speak to are looking to deploy AI to try to be more responsive to customers’ needs and provide them with increased flexibility and hyper-personalised experiences.

Undoubtedly, these examples could save costs but more importantly it’s enhancing the customer experience, helped by it being incredibly intuitive. It can also collect behavioural data on customers, which can then be used to inform the organisation.

These solutions need to be handled carefully as different generations might be more sensitive to this level of tracking. Targeting certain demographics might be easier than others as there will be a variety of expectations within various groups. Companies have to be incredibly careful with the data they have, consider the moral position and make sure they’re adhering to regulations in place to protect the consumer when using it, and judge sensitively how exactly it will be used.

To adopt AI successfully and responsibly, businesses need to invest in the right people and skills, focus on developing a source of rich data, and ensure they understand how to mitigate the associated risks, particularly in terms of data privacy and security.

Larger organisations may look into creating bespoke tools suitable and tailored to their business needs, however there are also third-party developers available who are creating tools that can be implemented cost effectively by smaller operators.

What would benefit the sector is if some of these large early adopters began experimenting with the technology and road-testing some of the tools out there, which could help create some benchmarks for the industry. They could then help determine what’s acceptable to customers and what is workable.

Alongside these early adopters it would be good to see all companies explore the opportunities that AI can deliver and be inquisitive about its potential. Meanwhile at Barclays we will continue to share our knowledge on digital innovation, with AI likely to be a fundamental component of this journey for a growing number of businesses.

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