Adapting to Change: The Integration of Artificial Intelligence (AI) to Address Labour Shortages in UK Hospitality

Abstract

This dissertation explores the transformative role of Artificial Intelligence (AI) and digital innovation in mitigating labour shortages within the UK's hospitality industry. Amidst an era marked by significant staff deficits, exacerbated by demographic shifts, Brexit, and the aftermath of the COVID-19 pandemic, the hospitality sector faces unprecedented challenges. Through qualitative research, involving semi-structured interviews with four hotel managers, seven hotel staff and two customers. This study delves into the multifaceted impacts of AI integration on operational efficiency, employee dynamics, and customer satisfaction. Findings indicate that AI technologies—spanning predictive analytics, service robots, and digital training platforms—offer potent solutions to labour scarcities by enhancing service delivery, streamlining recruitment, and fostering workforce development. Yet, the adoption of such technologies is not without its challenges, including substantial initial investments, requisite skill upgrades for existing staff, and potential impacts on employment. This research further examines the distinction between AI-equipped and traditional hotels, revealing that while AI promises operational advancements and cost efficiencies, the human element remains irreplaceable in ensuring guest satisfaction. In conclusion, the study underscores the necessity of a balanced approach towards AI adoption in the hospitality sector, advocating for strategic planning and stakeholder engagement to leverage technology effectively while preserving the essence of hospitality's human touch. The insights gleaned from this investigation not only contribute to academic discourse but also offer practical guidance for hospitality managers and policymakers navigating the sector's digital transformation journey.