Hospitality at a crossroads

Technology everywhere, purpose still unclear

As 2026 approaches, the hospitality industry is increasingly focused on the rise of agentic AI. Its ability to automate decisions, orchestrate systems and reduce operational friction is undeniable. Yet, as Alan Young of Infor argues, the real issue is not the technology itself, but the intent behind its deployment. AI may dominate headlines, but it should not define the soul of hospitality.

Efficiency without empathy carries a cost

In recent years, automation in hospitality has often been driven by cost reduction rather than service enhancement. When technology is positioned as a replacement for human interaction, efficiency may improve, but trust erodes. Algorithmic decisions made without context or discretion risk stripping service of its emotional value, turning meaningful experiences into transactional exchanges.

When loyalty becomes purely mathematical

Examples from adjacent sectors, such as airline loyalty programs that downgrade long-standing customers based solely on metrics, highlight a broader industry challenge. Data-driven logic may be consistent, but it often fails to acknowledge history, nuance and human relationships. For hospitality, this approach threatens the very foundation of guest loyalty.

Why people remain the differentiator

Hospitality has always been defined by human connection. The ability to listen, empathize and respond thoughtfully cannot be replicated by even the most advanced algorithms. Employees who engage confidently and compassionately with guests represent a strategic advantage, not a cost to be minimized.

A potential turning point in 2026

The year ahead could mark a reset. In a more balanced model, agentic AI supports staff by removing administrative burden, enabling employees to focus on what matters most: service quality and genuine guest relationships. Technology, in this vision, becomes an enabler of better hospitality rather than a substitute for it.

As International Investment experts report, the trajectory of hospitality in 2026 will be shaped by how effectively companies balance AI adoption with human-centric service. Those that deploy technology to empower people, rather than replace them, are likely to build stronger brands, deeper loyalty and more resilient business models.