{"id":2503,"date":"2023-08-07T15:59:00","date_gmt":"2023-08-07T15:59:00","guid":{"rendered":"https:\/\/polaris-elements.co.uk\/?p=2503"},"modified":"2023-08-09T14:22:49","modified_gmt":"2023-08-09T14:22:49","slug":"neil-westwater-tackles-ai-bii-summer-2023","status":"publish","type":"post","link":"https:\/\/polaris-elements.co.uk\/neil-westwater-tackles-ai-bii-summer-2023\/","title":{"rendered":"AI Chatbot Reviews its Role in Hospitality"},"content":{"rendered":"

BII<\/a> Magazine (Summer 2023)<\/h2>\n

Polaris Elements’ Managing Director Neil Westwater tackles the issues surrounding AI and how it’s affecting hospitality – with the assistance of the AI-powered chat GPT4 to write this article.<\/h3>\n

When I was asked to write an article for the BII News\u2019 summer edition, I could have written about Polaris mPay<\/a>, our fully integrated mobile point-of-sale software that sits on your actual PDQ machine, or Polaris Quantum<\/a>, the latest inventory management software to the market. Instead, I chose to review the pressing issue\/opportunity of AI and how it will affect our beloved industry.<\/p>\n

What better way to research this subject than asking the AI-powered Chat GPT4<\/a> to write about how AI is currently impacting hospitality and how it will affect our businesses further in the future. There were a few repetitions and I have made some adjustments, but the following information should give you an idea of what it thinks (blowing its own trumpet). It is worth noting that when asked about what challenges Chat GPT4 saw for the sector, other than cost, it solely focuses on data privacy and security.<\/p>\n

CURRENT APPLICATIONS OF AI IN THE RESTAURANT AND BAR INDUSTRY<\/h4>\n

1. Automation<\/strong>
\nOne of the most significant impacts of AI on the restaurant and bar industry is automation. Automation can help reduce labour costs, eliminate errors and improve efficiency. Many restaurants and bars are already using AI-powered systems, such as digital ordering kiosks, self-checkout machines and mobile ordering to streamline their operations and enhance customer experience. These systems allow customers to order and pay without interacting with staff, freeing up staff time to focus on other tasks.<\/p>\n

2. Predictive analytics<\/strong>
\nAnother area where AI is being used in the restaurant and bar industry is predictive analytics. AI can help restaurants and bars forecast demand, optimise inventory and reduce waste. For example, AI-powered software can analyse historical sales data, weather forecasts and local events to predict customer traffic and optimise food and beverage inventory accordingly.<\/p>\n

3. Personalisation<\/strong>
\nPersonalisation is another area where AI is being used to enhance customer experience. AI-powered systems can collect and analyse customer data to create personalised recommendations, offers and promotions. For example, a bar could use AI to analyse a customer\u2019s past orders and preferences to create a customised cocktail menu for them.<\/p>\n

4. Chatbots<\/strong>
\nAI-powered chatbots are another area where restaurants and bars are leveraging AI technology. Chatbots can answer customer inquiries, take orders and provide recommendations. Chatbots can be particularly helpful for bars and restaurants that have limited staff resources and need to respond to customer inquiries quickly.<\/p>\n

POTENTIAL FUTURE APPLICATIONS<\/h4>\n

1. Predictive maintenance<\/strong>
\nAI-powered predictive maintenance can help restaurants and bars reduce equipment downtime and repair costs. AI can analyse data from sensors
\nand equipment to identify potential issues before they become significant problems. For example, AI-powered software can detect when a piece of equipment is about to fail and schedule maintenance proactively.<\/p>\n

2. Menu engineering<\/strong>
\nAI can help restaurants and bars optimise their menus to increase profitability. AI-powered systems can analyse menu items\u2019 popularity, cost and margin to suggest menu changes that can improve profitability. For example, AI-powered software can suggest replacing an item that is not selling well with a more profitable alternative.<\/p>\n

3. Staff scheduling<\/strong>
\nAI can help restaurants and bars optimise staff scheduling to reduce labour costs while ensuring optimal coverage. AI-powered systems can analyse
\nhistorical sales data, weather forecasts and local events to predict customer traffic and schedule staff accordingly. This can help reduce overstaffing and
\nunderstaffing, which can result in labour cost savings.<\/p>\n

4. Fraud detection<\/strong>
\nAI can help restaurants and bars detect and prevent fraud. AI-powered software can analyse sales data and identify suspicious activity, such as unusual transactions or sales patterns. This can help restaurants and bars detect and prevent theft and other fraudulent activities.<\/p>\n

CHALLENGES AND CONCERNS<\/h4>\n

While AI offers many benefits to the restaurant and bar industry, there are also challenges and concerns that need to be addressed.<\/p>\n

One of the most significant challenges is the cost of implementing AI technology. However, integrated software that utilises AI should negate the need to overextend your budget, especially when there are so many other cost pressures in the sector. AI should realise a fast ROI and enable growth \u2013 not be a hinderance.<\/p>\n

Another concern is data privacy and security. This includes but is not limited to:<\/p>\n