The big tech firms are ramping up their investments in AI at rates not seen since mobile phones and the internet. Companies like Microsoft and Amazon are leading the way with an expected combined spend of more than $240 billion.
The travel industry is no exception. According to recent figures GenAI in travel is worth around $894 million and is anticipated to reach around $5Bn by 2034.
Why are businesses investing so much?
The potential of AI across every industry is immense and travel businesses are making sure they are well positioned. This is a growing market and the impact on the economy is off the scale, especially in countries like India where AI could make a significant contribution to the country’s GDP.
There are of course huge demands on business infrastructure with training requirements, data centres and processors but AI is already starting to make a difference. The revenue potential from Microsoft’s AI portfolio alone is the fastest growing segment in the company’s history.
Where does travel sit in all this?
According to a recent survey conducted across 10 markets in Europe, Asia the US and Canada, Mercury Analytics revealed that generative AI was cited by almost half of respondents as a ‘top priority’ for 2025 – ahead of any other technology – More in Asia Pacific.
Most said that digital assistants, tailored recommendations and content generation already have a significant presence
While the technology will be a key focus for the next year, travel needs to be sure that Generative AI will deliver sufficient returns on investment. Additionally, with data security, privacy and content reliability being crucial factors we need to use this new tech responsibly.
Tech companies that clearly meet these requirements when developing and offering AI Gen products will lead the way and prosper in this next wave of technological advancement.