Hotels Adopted AI to Combat Rising Costs

Industry leaders at the Lodging Conference shared strategies for using artificial intelligence to optimize hotel operations.

Updated on Oct. 13, 2026 in Hospitality

Bold flat-color editorial illustration showing a stylized, geometric hotel reception desk in navy and gold, representing operational efficiency in the hospitality industry. — Hospitality firms, including MGM Resorts and Sonesta, are increasingly deploying artificial intelligence platforms to manage rising labor costs and optimize operational forecasting. AI Illustration. Upload story photo >

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Executives at the Lodging Conference in Phoenix recently discussed how artificial intelligence is being used to combat rising labor costs and inflationary pressures. Major hospitality brands are deploying AI tools to manage staffing, streamline service inquiries, and forecast guest behavior.

Why it matters

Rising labor costs, inflationary pressure, and interest-rate uncertainty have driven the hospitality sector to seek greater operational efficiency through automation. By utilizing AI, firms aim to maintain service standards while addressing significant fiscal challenges.

Hospitality firms are utilizing AI for housekeeping, scheduling, and analytics to navigate an economic environment where wages, such as the $32 an hour starting rate in Waikiki, continue to climb. AI systems now handle the majority of service-related inquiries in some contact center operations.

The players

Sonesta International Hotels

This international hospitality company operates a diverse portfolio of hotel brands and employs AI for housekeeping, scheduling, and legal functions.

MGM Resorts International

This global entertainment and hospitality company uses AI to manage call centers, concierge duties, and forecasting models for its properties.

The details

Hotel groups are integrating AI to curate personalized guest recommendations and optimize on-property operations through advanced forecasting models. Sonesta International Hotels and MGM Resorts International highlighted their use of these platforms to automate tasks ranging from legal functions to group behavior prediction.

The Lodging Conference took place in Phoenix during the week of October 6, 2026.
The industry expects AI will redefine hospitality operations over the next decade.

Market Landscape

The adoption of AI represents a fundamental shift in how the hospitality industry manages its cost structure and guest service model. By leveraging automation, firms are positioning themselves to stay competitive against peers while mitigating the impact of inflationary economic trends.

Travelers may notice more efficient booking processes and faster resolutions to service inquiries as hotels automate their contact centers. While AI handles back-end operations, these changes are designed to stabilize prices by offsetting the rising costs of property maintenance and labor.

The takeaway

Hotels are increasingly turning to technology to bridge the gap between rising labor costs and maintaining service quality. Travelers can expect digital tools to play a larger role in their guest experience, from automated concierge interactions to personalized travel planning.