The sanity checks you need to run before making AI work for your business
Question the audacious claims of Artificial Intelligence, then grasp its potential, says Mark Thompson, chief information officer, Palatinate Group
The challenge of Artificial Intelligence (AI), and what to do with it, is not dissimilar to many of the technology initiatives that commercial leaders are led to believe will revolutionise their businesses, such as “working in an Agile methodology”, “big data”, “migrating to the cloud” and “mobile first”. The challenges are getting up to speed quickly with a fast-moving evolving technology, and managing the expectations of stakeholders.
AI is big news in the media. There is rarely a weekly news bulletin or technology update that does not contain the two-letter acronym that must now be part of every technology leader’s agenda. Everything now has to include AI, but when you watch an advert on the TV, claiming that the latest home appliance has “AI technology”, is it credible or just another case of “AI-washing”?
There are clearly some sanity checks anyone should be conducting around AI claims:
- Is an organisation marketing AI when the underlying technology is actually based on traditional algorithms or manual processes?
- Are the claims exaggerated, implying the technology is powered by advanced AI when it’s not?
- Are they using AI buzzwords to grab attention without any real integration?
- Are there misleading visuals, complex diagrams that give the impression of advanced AI even if the technology is basic? (Pun intended for the older technologists amongst you who remember programming in Basic.)
Consequently, what is clear is that it’s essential for individuals to be vigilant when assessing such claims and remain grounded in the benefits AI technology can bring to your business.
MAKING AI WORK FOR YOU
For the specialist tour operator, it’s important to understand what AI actually means and how can its advantages be harnessed. There are a number of factors and considerations that should be carefully thought through but, before anything else, you should start with an AI strategy, which could be defined as simply as “Why AI?”. For example, it might be:
- My competitors are doing something. I don’t really understand it and don’t want to get left behind.
- Using AI will attract investment or enhance valuation of my business when I sell it in the future.
- How can I use AI as a barrier to stop my competitors entering my marketplace, provide superior customer experience, or (most commonly) cut costs?
Of the above, the third point is where you should focus your thinking on AI.
A DEEPER DIVE
Clearly, one of the areas where AI is starting to provide cost savings is the rise of “chatbots”. In an era of digital customer service, this is relevant to a digital brand or a brand with significant overheads. However, the specialist tour operator that provides competitor advantage through their expertise and knowledge, must balance the customer impact of introducing chatbots and automated responses to the demographic they deal with.
Perhaps the biggest challenge right now for specialist tour operators is to do with the funding of AI projects. Typically, the economies of scale do not exist within specialist tour operators to harness significant cost savings that exist in bigger businesses. Within a specialist tour operator, the technology team is often small and just too busy “delivering stuff” that has already been prioritised. Similarly, the tech budgets are typically lean and, if AI is seen as research and development, then where does the budget come from?
However, AI is out of its box. It must not be ignored and is here to stay. The specialist tour operator needs to question the audacious claims that exist about AI today, understand the potential of AI for your particular business, and start to factor AI into your budgets for future technology projects. Do not look at AI as being a standalone separate project to be worked on. Build it into what you are already planning and explore the added value AI can bring in terms of automated functionality or a faster speed to market.
Travel Technology Initiative (TTI) is a not-for-profit organisation providing members with the latest thinking on technology as well as developing industry-wide standards for travel. For more information, visit tti.org
In our TTI Travel Tech Talk series, we have looked at travel's next disruptive technology – the metaverse; whether Artificial Intelligence will replace the human travel agent; how to stop cyber-criminals infiltrating IT systems and how digital transformation can optimise the sales process.
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