OECD: AI adoption could bolster tourism in G7 countries – But how?

Artificial Intelligence (AI) could transform the tourism sector for the better, particularly in G7 countries. This is by driving innovation, sustainability, and inclusivity, according to the OECD’s latest policy paper, “Artificial Intelligence and Tourism.” 

In the report, the Organisation for Economic Co-operation and Development (OECD) emphasized that AI offers a transformative force in addressing tourism’s most pressing challenges, including managing visitor flows and optimizing resource usage. 

“AI applications offer highly personalised travel experiences through customised recommendations and virtual assistant services, analysing individual preferences to tailor suggestions for each traveller,” OECD stated.

AI-driven applications are already making headway in the industry, as tourists can now get tailored travel recommendations, automate operational tasks, and facilitate real-time traffic management. 

The policy paper also notes that AI has the potential to enhance visitor experiences with more interactive and personalized offerings while ensuring that tourism benefits are distributed equitably, especially in G7 countries comprising Germany, France, the US, Canada, the UK, Japan, and Italy.

Enhancing sustainability and accessibility

AI’s role in promoting sustainable tourism practices is a focal point of the OECD’s recommendations. By leveraging real-time data, AI can help destinations manage visitor flows to avoid overcrowding, preserve cultural heritage sites, and minimize environmental impacts. 

OECD mentioned Barcelona Zoo’s AI chatbot, Zoobot, as an example of how technology can enhance accessibility for visitors with disabilities. Similarly, it highlighted Notre Dame Cathedral’s use of AI-driven digital twins for restoration efforts, demonstrating AI’s capability to aid in the preservation of historical landmarks. 

Additionally, per the report, AI can improve the socio-economic value of tourism by fostering green mobility options, reducing carbon footprints, and promoting local economies. 

OECD also encouraged international collaboration among G7 nations to align AI research and policy efforts, which could make it easier to address global challenges collectively.

OECD: AI supporting small and medium enterprises (SMEs)

In the paper, the OECD echoes the importance of supporting SMEs in tourism as they adapt to AI. These smaller enterprises often struggle to keep pace with rapid technological advancements, facing barriers such as high implementation costs, limited expertise, and regulatory complexities. 

According to the OECD, the divide in AI adoption risks exacerbating existing inequalities within the tourism sector, favoring large, tech-savvy enterprises over smaller players. The organization deems tailored support programs and training initiatives imperative to bridge this gap and ensure inclusive growth. 

However, for SMEs to leverage AI effectively, governments and industry bodies need to focus on accessible innovation hubs, practical training opportunities, and financial support mechanisms.

Addressing risks and challenges

Despite its benefits, the OECD cautions against the risks of AI adoption. Data privacy concerns, algorithmic bias, and workforce displacement require careful management. While AI has the potential to automate routine tasks and create more complex, rewarding jobs, there is also a risk of job displacement, particularly in roles reliant on manual labor or repetitive tasks. 

OECD shed light on the misuse of AI for manipulative marketing, such as deepfake tourism videos or fake reviews, which can erode trust and harm destination reputations. To address these concerns, the organization calls for international cooperation in developing ethical AI standards and ensuring compliance.

“Existing regulatory and legal frameworks can promote responsible AI use in tourism by providing clear guidelines for developers and operators, and facilitate the safe and ethical integration of AI technologies. It is also important to provide a safe environment for businesses to test and pilot innovation including AI applications,” the paper outlined.

The OECD report concludes that while AI adoption in tourism is still in its early stages, its potential to revolutionize the sector is immense. 

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