The Artificial Intelligence (AI) in Hospitality Market at a CAGR of 0.576 between 2025 and 2029, revenue of 1.44 billion

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The Business Research Company’s Artificial Intelligence (AI) in Hospitality Global Market Report 2026 – Market Size, Trends, And Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, January 9, 2026 /EINPresswire.com/ -- The hospitality industry is rapidly embracing artificial intelligence (AI) to transform guest experiences and streamline operations. With AI technologies becoming increasingly sophisticated, this sector is witnessing remarkable growth and a promising future. Let’s explore the current market size, key drivers, leading regions, and the factors fueling this dynamic expansion of AI in hospitality.

Projected Market Size and Growth Rate of the Artificial Intelligence in Hospitality Market
The artificial intelligence in hospitality market has seen remarkable expansion in recent years. From a market value of $0.15 billion in 2024, it is expected to rise to $0.23 billion by 2025, marking an impressive compound annual growth rate (CAGR) of 56.1%. This surge during the historic period is largely due to the growing demand for improved customer experiences, widespread adoption of chatbots and virtual assistants, the untapped potential of AI in travel and hospitality sectors, and the use of advanced analytics alongside AI-powered robots to manage various on-property functions.

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Looking ahead, the AI in hospitality market is anticipated to grow exponentially, reaching $1.44 billion by 2029 at a CAGR of 57.6%. This forecasted expansion is driven by the increasing use of generative AI for creating dynamic content, integration with IoT, blockchain, and cloud technologies, efforts to enhance guest experiences, and rising consumer expectations. Key trends shaping this growth include adoption of cutting-edge technologies, a focus on personalized customer service, operational optimization, and addressing emerging challenges.

Understanding Artificial Intelligence in Hospitality and Its Applications
Artificial intelligence in hospitality involves applying AI technologies such as machine learning, natural language processing, chatbots, blockchain, and big data analytics across the industry. These tools help improve efficiency, customize guest interactions, and innovate service delivery throughout various segments like accommodation, dining, entertainment, and customer relations. By integrating AI, hospitality providers can streamline operations while offering tailored experiences to enhance customer satisfaction.

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Digitalization as a Primary Driver for AI Adoption in Hospitality
One of the main factors propelling the growth of AI in hospitality is the rapid digitalization within the industry. This process involves the comprehensive adoption of digital technologies to transform and improve hospitality services across the board. As businesses increasingly employ advanced digital tools, the demand for AI solutions rises to further optimize operations, elevate operational efficiency, personalize guest services, and enable data-driven decision-making.

Supporting this trend, a report from Boston Consulting Group in September 2022 highlighted that nearly half of travel and tourism companies have successfully undergone digital transformations—about 25% higher than the average across other industries. This significant shift toward digitalization acts as a strong catalyst for the ongoing expansion of AI applications in hospitality.

North America Leading the Artificial Intelligence in Hospitality Market
In 2024, North America held the largest share of the artificial intelligence in hospitality market. Alongside North America, the market analysis covers regions such as Asia-Pacific, Western Europe, Eastern Europe, South America, the Middle East, and Africa, providing a global perspective on AI adoption and growth patterns.

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