1

PREFACE

This project will focus on the study of introduction of Artificial Intelligence to Indian
hospitality industry to ameliorate the future growth of Indian Hospitality in the growing
world.

The objectives which will be covered in this Research Project are: -

 To find what is Artificial Intelligence.
 A brief history of Artificial Intelligence.
 What are the types of Artificial Intelligence.
 What is the application of Artificial Intelligence.
 Challenges of introducing Artificial Intelligence.
 How it will affect the Indian Hospitality Industry.
 Pros and cons of Artificial Intelligence to the Indian Hospitality Industry.
2

CERTIFICATE

This is to certify that the project entitled A brief study on introduction of _Artificial intelligence to
Indian hospitality industry is submitted by Itisha Das roll no. 1741216003, Ankit Singh Bhadoria roll
no. 1741216004 __ in partial fulfillment of the academic requirement for the award of 3years B.Sc
H&HA from NCHMCT & IGNOU at SIHM Telangana for the session 2017-2020.

The contents of the project report have been found to be______________________.

Date of Submission Guide’s Signature

Internal Examiner External Examiner

3

. DECLARATION

We,Itisha Das ROLL no. 1741216003, Ankit singh Bhadoria roll no. 1741216004_, B.Sc. H&HA ,
students of IHM&CTS Telangana, Session (2017-2020) hereby declares that A brief study on
introduction of _Artificial intelligence to Indian hospitality industry submitted in the partial
fulfillment of the requirement for the award of degree of B.Sc H&HA is record of original project
work done my me under the guidance of Dr. Hemant lecturer IHM&CT Telangana.

Signature of Candidates with enrollment

ITISHA DAS, ROLL NO. 1741216003

ANKIT SINGH BHADORIA, ROLL NO. 1741216004

4

ACKNOWLEDGE

In the course of completion of this research, we received immense help and

cooperation from various institutions. It is a sincere duty to record appreciation
for them.

We would like to express our sincere gratitude to the principal Ravi Chandra
(CHEF) for giving us this opportunity to work on this project. We are also
indebted to our internal faculty Chef Rakesh karanam for devoting his precious
time and providing guidance, comments and valuable inputs during the course
of my research. we would also like to extend our gratitude to our project guide
Dr. Hemant with his guidance this project is successful.

Finally, we would like to thank all other people who provided us with the
resources to conduct our research. The help and assistance were very valuable
to us, which helped us in completing this research with all the necessary
information.
5

INDEX
CHAPTER – 1 Introduction Page 6 – 7
CHAPTER – 2 What is artificial Page 8 – 14
intelligence.
CHAPTER – 3 Brief History pf Artificial Page 15 – 20
Intelligence
CHAPTER – 4 What are the types of Page 21 – 24
Artificial Intelligence
CHAPTER – 5 What is the application of Page 25– 40
Artificial Intelligence.

CHAPTER – 6 Challenges of introducing Page 41 – 46

Artificial Intelligence.

CHAPTER – 7 How it will affect the Pages 47 – 51

Hospitality Industry.

CHAPTER – 8 Pros and Cons of Artificial Page 52 – 54

Intelligence to the
Indian Hospitality
Industry.

CHAPTER – 9 SURVEY ON Page 55 – 65

ARTIFICIAL
INTELLIGENCE

CONCLUSION Page 66
BIBLOGRAPHY Page 67
6

DO YOU KNOW?

PWC has reported that by

2030. The global GDP could
CHAPTER – 1 rise by 14% because of AI
enabled activities
INTODUCTION

ARTIFICIAL INTELLIGENCE AND THE HOSPITALITY INDUSTRY

INNOVATIONS

D igital innovation and technology are shaking up the hospitality industry, with
artificial intelligence increasingly being used to enhance the customer
experience and make businesses smarter. The advantage of any technology
that uses machine learning is that over time it gets better at processing data and
predicting what people want. Ultimately of course, this is what hospitality is about –
making sure guests’ requirements are anticipated and creating the best experience
possible.

Hotels are the perfect “test bed” for technology, particularly the internet of things and
smart devices, and the most interesting approach is creating a fully personalised
experience. By integrating data from every touchpoint in the hotel, hoteliers can
improve customer service, reduce costs and tailor services.

With that in mind, and for the first time, Hotel ICON, a respected innovation thought
leader in hospitality management, will be holding a knowledge-sharing forum for
senior executives in the industry on Housekeeping this August.

The hospitality industry traditionally is labour-intensive and whilst the personal

connection of manpower cannot be easily replaced by technology, the most innovative
hotels will keep ahead of technological advances to bring benefit and value to guests.

The inaugural Housekeeping Operation Forum will feature speakers from Konica
Minolta Business Solutions, Diversey, FCS Computer Systems and the Shangri-La
Hotel Group, addressing the challenges of Housekeeping operation in hotels and the
changing behaviours of customers.

Konica Minolta will be sharing their success story on their recently deployed
hospitality robot fleet. The navigation of the delivery robots or autonomous wheels
platform throughout hotel floors and elevators is aimed at delivering items such as
7

snacks and amenities to hotel guests, thus enabling hotel staff to focus on other
guests’ needs. Artificial intelligence in hotels is already embracing many forms, and
one way or another, it will begin to Michell positively impact the business by making
the work of human staff more efficient rather than replacing it.
As computer technology has advanced, artificial intelligence has become more
reliable, enhancing its standing within the business world. Indeed, hospitality
companies are increasingly using AI to carry out customer service tasks, which are
especially important within hotels and resorts. In this article, you get a closer look in
which way artificial intelligence is revolutionising the hospitality industry.
Artificial intelligence, or AI, refers to the performance of seemingly intelligent
behaviours by computers or machines. Artificial intelligence, as a concept, has existed
since the 1950s, but it is only in recent times that technology has advanced to the
point where it can be considered reliable enough to deploy for important business
tasks.
Essentially, AI refers to computers or machines carrying out tasks that were
traditionally thought to require cognitive function to carry out. It is associated with
concepts like automation and big data.
Today, the collection of customer data, combined with the improvements to computer
technology, mean that artificial intelligence can be utilised for a huge range of
functions, from basic customer service, to personalisation tasks, more advanced
problem-solving, and even for sales processes and direct messaging.

DO YOU KNOW?
Between 2013 and 2017,
venture capital funding
towards AI increased 4.5
times, and venture
capital in total increased
by 2.08 times.

Travel, tourism and hospitality companies have started to adopt robots, artificial
intelligence and service automation (RAISA) in the form of chatbots, delivery robots,
robot-concierge, conveyor restaurants, self-service information/check-in/check-out
kiosks, and many others. Despite the huge advancements in social robotics, the
research on robots in tourism has been extremely limited – a gap that is partially filled
by this paper. It investigates the costs and benefits of the adoption of RAISA by
travel, tourism, and hospitality companies (hotels, restaurants, event organisers, theme
and amusement parks, airports, car rental companies, travel agencies and tourist
information centres, museums and art galleries and others). Specifically, the paper
looks at how RAISA influence the competitiveness, service quality, human resource
management, service operations processes and standards, hospitality facilities layout,
operating costs and revenues, and investigates the conditions under which the
adoption of RAISA would be of benefit of the company. The paper acknowledges that
the adoption of RAISA is dependent on the labour and technology costs, customers'
8

readiness and willingness to be served by a robot, cultural characteristics of both

customers and service providers, the technological characteristics of RAISA solutions
and other factors. The paper elaborates on the practical challenges to be faced by
tourist companies when introducing RAISA (e.g. related to resistance to change,
reengineering of service processes) and provide recommendations to both tourism
companies and robot manufacturers how to deal with these challenges.

DO YOU KNOW?

January 2018, Google CEO

Sundar Pichai claimed that
CHAPTER – 2 Artificial Intelligence (AI) will be
more transformative to
humanity than electricity.
What is artificial intelligence?
In computer science, artificial intelligence (AI), sometimes called machine intelligence,
is intelligence demonstrated by machines, in contrast to the natural intelligence displayed
by humans and animals.  Leading AI textbooks define the field as the study of "intelligent
agents": any device that perceives its environment and takes actions that maximize its chance
of successfully achieving its goals.
Colloquially, the term "artificial intelligence" is often used to describe machines (or
computers) that mimic "cognitive" functions that humans associate with the human mind,
such as "learning" and "problem solving".
As machines become increasingly capable, tasks considered to require "intelligence" are
often removed from the definition of AI, a phenomenon known as the AI effect A quip in
Tessler’s Theorem says, "AI is whatever hasn't been done yet."  
For instance, optical character recognition is frequently excluded from things considered to
be AI effect, having become a routine technology. Modern machine capabilities generally
classified as AI include successfully understanding human speech, competing at the highest
level in strategic game systems (such as chess and Go), autonomously operating cars,
intelligent routing in content delivery networks, and military simulations.
Artificial intelligence was founded as an academic discipline in 1955, and in the years since
has experienced several waves of optimism, followed by disappointment and the loss of
funding (known as an "AI winter"), followed by new approaches, success and renewed
funding. For most of its history, AI research has been divided into subfields that often fail to
communicate with each other These sub-fields are based on technical considerations, such as
particular goals (e.g. "robotics" or "machine learning"), the use of tools ("logic" or artificial
neural networks), or deep philosophical differences. Subfields have also been based on social
factors (institutions or the work of researchers).
The traditional problems (or goals) of AI research include reasoning, knowledge
representation, planning, learning, natural language processing, perception and the ability to
move and manipulate objects General intelligence is among the field's long-term
 9

goals Approaches include statistical methods, computational intelligence, and traditional

symbolic AI. Many tools are used in AI, including versions of search and mathematical
optimization, artificial neural networks, and methods based on statistics, probability and
economics. The AI field draws upon computer science, information
engineering, mathematics, psychology, linguistics, philosophy, and many other fields.

The field was founded on the assumption that human intelligence "can be so precisely

described that a machine can be made to simulate it". This raises philosophical arguments
about the nature of the mind and the ethics of creating artificial beings endowed with human-
like intelligence. These issues have been explored
by myth, fiction and philosophy since antiquity. Some people also consider AI to be a danger
to humanity if it progresses unabated. Others believe that AI, unlike previous technological
revolutions, will create a risk of mass unemployment.

In the twenty-first century, AI techniques have experienced a resurgence following

concurrent advances in computer power, large amounts of data, and theoretical
understanding; and AI techniques have become an essential part of the technology industry,
helping to solve many challenging problems in computer science, software
engineering and operations research.
A typical AI analyses its environment and takes actions that maximize its chance of
success An AI's intended utility function (or goal) can be simple ("1 if the AI wins a game
of Go, 0 otherwise") or complex ("Do mathematically similar actions to the ones succeeded
in the past").

Goals can be explicitly defined or induced. If the AI is programmed for "reinforcement

learning", goals can be implicitly induced by rewarding some types of behaviour or punishing
others Alternatively, an evolutionary system can induce goals by using a "fitness function" to
mutate and preferentially replicate high-scoring AI systems, like how animals evolved to
innately desire certain goals such as finding food.

 Some AI systems, such as nearest -neighbour, instead of reason by analogy, these systems
are not generally given goals, except to the degree that goals are implicit in their training
data. Such systems can still be benchmarked if the non-goal system is framed as a system
whose "goal" is to successfully accomplish its narrow classification task
AI often revolves around the use of algorithms. An algorithm is a set of unambiguous
instructions that a mechanical computer can execute. A complex algorithm is often built on
top of other, simpler, algorithms.
A simple example of an algorithm is the following (optimal for first player) recipe for play at

1. If someone has a "threat" (that is, two in a row), take the remaining square.
Otherwise,
 10

2. if a move "forks" to create two threats at once, play that move. Otherwise,
3. take the centre square if it is free. Otherwise,
4. if your opponent has played in a corner, take the opposite corner. Otherwise,
5. take an empty corner if one exists. Otherwise,
6. take any empty square.

Many AI algorithms are capable of learning from data; they can enhance themselves by
learning new heuristics (strategies, or "rules of thumb", that have worked well in the past), or
can themselves write other algorithms. Some of the "learners" described below, including
Bayesian networks, decision trees, and nearest-neighbour, could theoretically, (given infinite
data, time, and memory) learn to approximate any function, including which combination of
mathematical functions would best describe the world [citation needed].

These learners could, therefore, derive all possible knowledge, by considering every possible
hypothesis and matching them against the data. In practice, it is almost never possible to
consider every possibility, because of the phenomenon of "combinatorial explosion", where
the amount of time needed to solve a problem grows exponentially. Much of AI research
involves figuring out how to identify and avoid considering broad range of possibilities that
are unlikely to be beneficial. 
For example, when viewing a map and looking for the shortest driving route
from Denver to New York in the East, one can in most cases skip looking at any path
through San Francisco or other areas far to the West; thus, an AI wielding a pathfinding
algorithm like A* can avoid the combinatorial explosion that would ensue if every possible
route had to be ponderously considered in turn.

The earliest (and easiest to understand) approach to AI was symbolism (such as formal logic):
"If an otherwise healthy adult has a fever, then they may have influenza". A second, more
general, approach is Bayesian inference: "If the current patient has a fever, adjust the
probability they have influenza in such-and-such way". The third major approach, extremely
popular in routine business AI applications, are analogises such as SVM and nearest-
neighbour: "After examining the records of known past patients whose temperature,
symptoms, age, and other factors mostly match the current patient, X% of those patients
turned out to have influenza".

A fourth approach is harder to intuitively understand but is inspired by how the brain's
machinery works: the artificial neural network approach uses artificial "neurons" that can
learn by comparing itself to the desired output and altering the strengths of the connections
between its internal neurons to "reinforce" connections that seemed to be useful. These four
main approaches can overlap with each other and with evolutionary systems; for example,
neural nets can learn to make inferences, to generalize, and to make analogies. Some systems
implicitly or explicitly use multiple of these approaches, alongside many other AI and non-AI
algorithms; the best approach is often different depending on the problem.

Learning algorithms work on the basis that strategies, algorithms, and inferences that worked
well in the past are likely to continue working well in the future. These inferences can be
obvious, such as "since the sun rose every morning for the last 10,000 days, it will probably
rise tomorrow morning as well". They can be nuanced, such as "X% of families have
geographically separate species with colour variants, so there is a Y% chance that
11

undiscovered black swans exist". Learners also work based on "Occam's razor": The simplest
theory that explains the data is the likeliest. Therefore, according to Occam's razor principle,
a learner must be designed such that it prefers simpler theories to complex theories, except in
cases where the complex theory is proven substantially better.

The blue line could be an example of overfitting a linear function due to random noise.
Settling on a bad, overly complex theory gerrymandered to fit all the past training data is
known as overfitting. Many systems attempt to reduce overfitting by rewarding a theory in
accordance with how well it fits the data but penalizing the theory in accordance with how
complex the theory is. Besides classic overfitting, learners can also disappoint by "learning
the wrong lesson". A toy example is that an image classifier trained only on pictures of brown
horses and black cats might conclude that all brown patches are likely to be horses. A real-
world example is that, unlike humans, current image classifiers don't determine the spatial
relationship between components of the picture; instead, they learn abstract patterns of pixels
that humans are oblivious to, but that linearly correlate with images of certain types of real
objects. Faintly superimposing such a pattern on a legitimate image results in an "adversarial"
image that the system misclassifies.

Compared with humans, existing AI lacks several features of human "common sense reasoning"; most
notably, humans have powerful mechanisms for reasoning about "naïve physics" such as space, time,
and physical interactions. This enables even young children to easily make inferences like "If I roll
this pen off a table, it will fall on the floor". Humans also have a powerful mechanism of "folk
psychology" that helps them to interpret natural-language sentences such as "The city councilmen
refused the demonstrators a permit because they advocated violence". (A generic AI has difficulty
discerning whether the ones alleged to be advocating violence are the councilmen or the
demonstrators.) This lack of "common knowledge" means that AI often makes different mistakes than
humans make, in ways that can seem incomprehensible. For example, existing self-driving cars
cannot reason about the location nor the intentions of pedestrians in the exact way that humans do,
and instead must use non-human modes of reasoning to avoid accidents.
DO YOU KNOW?

Dr. Jean- Loup Rault says that

there will be Robot Pets with
whim people could make an
emotional connection by
2025.
12

There is no established unifying theory or paradigm that guides AI research. Researchers

disagree about many issues. A few of the most long-standing questions that have remained
unanswered are these: should artificial intelligence simulate natural intelligence by
studying psychology or neurobiology? Or is human biology as irrelevant to AI research as
bird biology is to aeronautical engineering? Can intelligent behaviour be described using
simple, elegant principles (such as logic or optimization)? Or does it necessarily require
solving a large number of completely unrelated problems?
Cybernetics and brain simulation

Main articles: Cybernetics and Computational neuroscience

In the 1940s and 1950s, a number of researchers explored the connection
between neurobiology, information theory, and cybernetics. Some of them built machines
that used electronic networks to exhibit rudimentary intelligence, such as W. Grey
Walter's turtles and the Johns Hopkins Beast. Many of these researchers gathered for
meetings of the Teleological Society at Princeton University and the Ratio Club in
England By 1960, this approach was largely abandoned, although elements of it would be
revived in the 1980s.
Symbolic

Main article: Symbolic AI
When access to digital computers became possible in the mid-1950s, AI research began to
explore the possibility that human intelligence could be reduced to symbol manipulation. The
research was centered in three institutions: Carnegie Mellon University, Stanford and MIT,
and as described below, each one developed its own style of research. John Haugland named
these symbolic approaches to AI "good old-fashioned AI" or "GOFAI “.
During the 1960s, symbolic approaches had achieved great success at simulating high-level
"thinking" in small demonstration programs. Approaches based on cybernetics or artificial
neural networks were abandoned or pushed into the background. Researchers in the 1960s
and the 1970s were convinced that symbolic approaches would eventually succeed in creating
a machine with artificial general intelligence and considered this the goal of their field.
Cognitive simulation
Economist Herbert Simon and Allen Newell studied human problem-solving skills and
attempted to formalize them, and their work laid the foundations of the field of artificial
intelligence, as well as cognitive science, operations research and management science. Their
research team used the results of psychological experiments to develop programs that
13

simulated the techniques that people used to solve problems. This tradition cantered
at Carnegie Mellon University would eventually culminate in the development of
the Soar architecture in the middle 1980s.
Logic-based
Unlike Simon and Newell, John McCarthy felt that machines did not need to simulate human
thought but should instead try to find the essence of abstract reasoning and problem-solving,
regardless whether people used the same algorithms. His laboratory at Stanford (SAIL)
focused on using formal logic to solve a wide variety of problems, including knowledge
representation, planning and learning Logic was also the focus of the work at the University
of Edinburgh and elsewhere in Europe which led to the development of the programming
language Prolong and the science of logic programming.

Anti-logic or scruffy
Researchers at MIT (such as Marvin Minsky and Seymour Paper found that solving difficult
problems in vision and natural language processing required ad-hoc solutions—they argued
that there was no simple and general principle (like logic) that would capture all the aspects
of intelligent behaviour. Roger Schunk described their "anti-logic" approaches as "scruffy"
(as opposed to the "neat" paradigms at CMU and Stanford). Common-sense knowledge
bases (such as Doug Lena’s Cyc) are an example of "scruffy" AI, since they must be built by
hand, one complicated concept at a time.

Knowledge-based
When computers with large memories became available around 1970, researchers from all
three traditions began to build knowledge into AI applications. This "knowledge revolution"
led to the development and deployment of expert systems (introduced by Edward
Feigenbaum), the first truly successful form of AI software. A key component of the system
architecture for all expert systems is the knowledge base, which stores facts and rules that
illustrate AI The knowledge revolution was also driven by the realization that enormous
amounts of knowledge would be required by many simple AI applications.

Sub-symbolic
By the 1980s, progress in symbolic AI seemed to stall and many believed that symbolic
systems would never be able to imitate all the processes of human cognition,
especially perception, robotics, learning and pattern recognition. A number of researchers
began to look into "sub-symbolic" approaches to specific AI problems Sub-symbolic methods
manage to approach intelligence without specific representations of knowledge.

Embodied intelligence
This includes embodied, situated, behavior-based, and nouvelle AI. Researchers from the
related field of robotics, such as Rodney Brooks, rejected symbolic AI and focused on the
basic engineering problems that would allow robots to move and survive Their work revived
the non-symbolic point of view of the early cybernetics researchers of the 1950s and
reintroduced the use of control theory in AI. This coincided with the development of
the embodied mind thesis in the related field of cognitive science: the idea that aspects of the
body (such as
movement, perception and visualization) are required for higher intelligence.
Within developmental robotics, developmental learning approaches are elaborated upon to
allow robots to accumulate repertoires of novel skills through autonomous self-exploration,
social interaction with human teachers, and the use of guidance mechanisms (active learning,
maturation, motor synergies, etc.).
14

Computational intelligence and soft computing

Interest in neural networks and "connectionism" was revived by David Rumelhart and others
in the middle of the 1980s.
Artificial neural networks are an example of soft computing—they are solutions to problems
which cannot be solved with complete logical certainty, and where an approximate solution is
often sufficient. Other soft computing approaches to AI include fuzzy systems, Grey system
theory, evolutionary computation and many statistical tools. The application of soft
computing to AI is studied collectively by the emerging discipline of computational
intelligence.

Statistical learning
Much of traditional GOFAI got bogged down on ad hoc patches to symbolic
computation that worked on their own toy models but failed to generalize to real-world
results. However, around the 1990s, AI researchers adopted sophisticated mathematical tools,
such as hidden Markov models (HMM), information theory, and normative
Bayesian decision theory to compare or to unify competing architectures. The shared
mathematical language permitted a high level of collaboration with more established fields
(like mathematics, economics or operations research). Compared with GOFAI, new
"statistical learning" techniques such as HMM and neural networks were gaining higher
levels of accuracy in many practical domains such as data mining, without necessarily
acquiring a semantic understanding of the datasets. The increased successes with real-world
data led to increasing emphasis on comparing different approaches against shared test data to
see which approach performed best in a broader context than that provided by idiosyncratic
toy models; AI research was becoming more scientific. Nowadays results of experiments are
often rigorously measurable and are sometimes (with difficulty) reproducible. Different
statistical learning techniques have different limitations; for example, basic HMM cannot
model the infinite possible combinations of natural language. Critics note that the shift from
GOFAI to statistical learning is often also a shift away from explainable AI. In AGI research,
some scholars caution against over-reliance on statistical learning, and argue that continuing
research into GOFAI will still be necessary to attain general intelligence.

Integrating the approaches

Intelligent agent paradigm
An intelligent agent is a system that perceives its environment and takes actions which
maximize its chances of success. The simplest intelligent agents are programs that solve
specific problems. More complicated agents include human beings and organizations of
human beings (such as firms). The paradigm allows researchers to directly compare or even
combine different approaches to isolated problems, by asking which agent is best at
maximizing a given "goal function". An agent that solves a specific problem can use any
approach that works—some agents are symbolic and logical, some are sub-symbolic artificial
neural networks and others may use new approaches. The paradigm also gives researchers a
common language to communicate with other fields—such as decision theory and economics
—that also use concepts of abstract agents. Building a complete agent requires researchers to
address realistic problems of integration; for example, because sensory systems give
uncertain information about the environment, planning systems must be able to function in
the presence of uncertainty. The intelligent agent paradigm became widely accepted during
the 1990s
15

Agent architectures and cognitive architectures

Researchers have designed systems to build intelligent systems out of interacting intelligent
agents in a multi-agent system. A hierarchical control system provides a bridge between sub-
symbolic AI at its lowest, reactive levels and traditional symbolic AI at its highest levels,
where relaxed time constraints permit planning and world modelling Some cognitive
architectures are custom-built to solve a narrow problem; others, such as Soar, are designed
to mimic human cognition and to provide insight into general intelligence. Modern
extensions of Soar are hybrid intelligent systems that include both symbolic and sub-
symbolic component

DO YOU KNOW?

In 2018 a machine of Microsoft translation system

achieved human level quality and accuracy when
translating news from Chinese to English.

DO TOU KNOW?
CHAPTER – 3
One of the first AI programs was
created in 1965 by Carl Djerassi. It
was named DENDRAL automatically
HISTORY OF ARTIFICIAL INTELLIGENCE discovered unknown forms of
medications.

The history of Artificial Intelligence (AI) began in antiquity, with myths, stories and

rumours of artificial beings endowed with intelligence or consciousness by master craftsmen.
The seeds of modern AI were planted by classical philosophers who attempted to describe the
process of human thinking as the mechanical manipulation of symbols. This work culminated
in the invention of the programmable digital computer in the 1940s, a machine based on the
abstract essence of mathematical reasoning. This device and the ideas behind it inspired a
handful of scientists to begin seriously discussing the possibility of building an electronic
brain.
The field of AI research was founded at a workshop held on the campus of Dartmouth
College during the summer of 1956. Those who attended would become the leaders of AI
research for decades. Many of them predicted that a machine as intelligent as a human being
16

would exist in no more than a generation and they were given millions of dollars to make this
vision come true.

Eventually, it became obvious that they had grossly underestimated the difficulty of the
project. In 1973, in response to the criticism from James Light hill and ongoing pressure from
congress, the U.S. and British Governments stopped funding undirected research into
artificial intelligence, and the difficult years that followed would later be known as an "AI
winter". Seven years later, a visionary initiative by the Japanese Government inspired
governments and industry to provide AI with billions of dollars, but by the late 80s the
investors became disillusioned by the absence of the needed computer power (hardware) and
withdrew funding again.
Investment and interest in AI boomed in the first decades of the 21st century, when machine
learning was successfully applied to many problems in academia and industry due to new
methods, the application of powerful computer hardware, and the collection of immense data
sets.

Precursors
Mechanical men and artificial beings appear in Greek myths, such as the golden robots
of Hephaestus and Pygmalion's Galatea. In the Middle Ages, there were rumours of secret
mystical or alchemical means of placing mind into matter, such as Jabir ibn
Haiyan’s Takin, Paracelsus' homunculus and Rabbi Judah Loew's Golem. By the 19th
century, ideas about artificial men and thinking machines were developed in fiction, as
in Mary Shelley's Frankenstein or Karel Capek’s R.U.R. (Rossum's Universal Robots), and
speculation, such as Samuel Butler's "Darwin among the Machines." AI has continued to be
an important element of science fiction into the present.
Formal reasoning
Artificial intelligence assumes that the process of human thought can be mechanized. The
study of mechanical—or "formal"—reasoning has a long
history. Chinese, Indian and Greek philosophers all developed structured methods of formal
deduction in the first millennium BCE. Their ideas were developed over the centuries by
philosophers such as Aristotle (who gave a formal analysis of
the syllogism), Euclid (whose Elements was a model of formal reasoning), al-
Khwarizmi (who developed algebra and gave his name to "algorithm") and
European scholastic philosophers such as William of Ockham and Duns Scotus.
Spanish philosopher Ramon (1232–1315) developed several logical machines devoted to the
production of knowledge by logical means; described his machines as mechanical entities
that could combine basic and undeniable truths by simple logical operations, produced by the
machine by mechanical meanings, in such ways as to produce all the possible
knowledge. Lull’s work had a great influence on Gottfried Leibniz, who redeveloped his
ideas.
17

Gottfried Leibniz, who speculated that human reason could be reduced to mechanical
calculation
In the 17th century, Leibniz, Thomas Hobbes and René Descartes explored the possibility
that all rational thought could be made as systematic as algebra or geometry.
Hobbes famously wrote in Leviathan: "reason is nothing but reckoning”. Leibniz envisioned
a universal language of reasoning (his characteristic universalis) which would reduce
argumentation to calculation, so that "there would be no more need of disputation between
two philosophers than between two accountants. For it would suffice to take their pencils in
hand, down to their slates, and to say each other (with a friend as witness, if they liked): Let
us calculate." These philosophers had begun to articulate the physical symbol
system hypothesis that would become the guiding faith of AI research.
In the 20th century, the study of mathematical logic provided the essential breakthrough that
made artificial intelligence seem plausible. The foundations had been set by such works
as Boole's The Laws of Thought and Frege's Begriffsschrift. Building on Frege's
system, Russell and Whitehead presented a formal treatment of the foundations of
mathematics in their masterpiece, the Principia Mathematica in 1913. Inspired by Russell's
success, David Hilbert challenged mathematicians of the 1920s and 30s to answer this
fundamental question: "can all of mathematical reasoning be formalized?" His question was
answered by Gödel's incompleteness proof, Turing's machine and Church's Lambda calculus.

US Army photo of the ENIAC at the Moore School of Electrical Engineering.

Their answer was surprising in two ways. First, they proved that there were, in fact, limits to
what mathematical logic could accomplish. But second (and more important for AI) their
work suggested that, within these limits, any form of mathematical reasoning could be
mechanized. The Church-Turing thesis implied that a mechanical device, shuffling symbols
as simple as 0 and 1, could imitate any conceivable process of mathematical deduction. The
key insight was the Turing machine—a simple theoretical construct that captured the essence
18

of abstract symbol manipulation. This invention would inspire a handful of scientists to begin
discussing the possibility of thinking machines.

Computer science
Calculating machines were built in antiquity and improved throughout history by many
mathematicians, including (once again) philosopher Gottfried Leibniz. In the early 19th
century, Charles Babbage designed a programmable computer (the Analytical Engine),
although it was never built. Ada Lovelace speculated that the machine "might compose
elaborate and scientific pieces of music of any degree of complexity or extent". (She is often
credited as the first programmer because of a set of notes she wrote that completely detail a
method for calculating Bernoulli numbers with the Engine.)
The first modern computers were the massive code breaking machines of the Second World
War (such as Z3, ENIAC and Colossus). The latter two of these machines were based on the
theoretical foundation laid by Alan Turing and developed by John von Neumann. q
The birth of artificial intelligence 1952–1956

The IBM 702: a computer used by the first generation of AI researchers.

In the 1940s and 50s, a handful of scientists from a variety of fields (mathematics,
psychology, engineering, economics and political science) began to discuss the possibility of
creating an artificial brain. The field of artificial intelligence research was founded as an
academic discipline in 1956.
Cybernetics and early neural networks
The earliest research into thinking machines was inspired by a confluence of ideas that
became prevalent in the late 1930s, 1940s, and early 1950s. Recent research in neurology had
shown that the brain was an electrical network of neurons that fired in all-or-nothing
pulses. Norbert Wiener's cybernetics described control and stability in electrical
networks. Claude Shannon's information theory described digital signals (i.e., all-or-nothing
signals). Alan Turing's theory of computation showed that any form of computation could be
described digitally. The close relationship between these ideas suggested that it might be
possible to construct an electronic brain.

Examples of work in this vein includes robots such as W. Grey Walter's turtles and the Johns
Hopkins Beast. These machines did not use computers, digital electronics or symbolic
reasoning; they were controlled entirely by analogy circuitry.
Walter Pitts and Warren McCulloch analysed networks of idealized artificial neurons and
showed how they might perform simple logical functions. They were the first to describe
what later researchers would call a neural network. One of the students inspired
by Pitts and McCulloch was a young Marvin Minsky, then a 24-year-old graduate student. In
1951 (with Dean Edmonds) he built the first neural net machine, the SNARC. Minsky was to
become one of the most important leaders and innovators in AI for the next 50 years.
19

Turing's test
In 1950 Alan Turing published a landmark paper in which he speculated about the possibility
of creating machines that think. He noted that "thinking" is difficult to define and devised his
famous Turing Test. If a machine could carry on a conversation (over a teleprinter) that was
indistinguishable from a conversation with a human being, then it was reasonable to say that
the machine was "thinking". This simplified version of the problem allowed Turing to argue
convincingly that a "thinking machine" was at least plausible and the paper answered all the
most common objections to the proposition. The Turing Test was the first serious proposal in
the philosophy of artificial intelligence.

Game AI
In 1951, using the Ferranti Mark 1 machine of the University of Manchester, Christopher
Strachey wrote a checkers program and Dietrich Prinz wrote one for chess. Arthur Samuel's
checkers program, developed in the middle 50s and early 60s, eventually achieved sufficient
skill to challenge a respectable amateur. Game AI would continue to be used as a measure of
progress in AI throughout its history.
Symbolic reasoning and the Logic Theorist
When access to digital computers became possible in the middle fifties, a few scientists
instinctively recognized that a machine that could manipulate numbers could also manipulate
symbols and that the manipulation of symbols could well be the essence of human thought.
This was a new approach to creating thinking machines.
In 1955, Allen Newell and (future Nobel Laureate) Herbert A. Simon created the "Logic
Theorist" (with help from J. C. Shaw). The program would eventually prove 38 of the first 52
theorems in Russell and Whitehead's Principia Mathematica and find new and more elegant
proofs for some. Simon said that they had "solved the venerable mind/body problem,
explaining how a system composed of matter can have the properties of mind." (This was an
early statement of the philosophical position John Searle would later call "Strong AI": that
machines can contain minds just as human bodies do.)

The field of AI, now more than a half a century old, finally achieved some of its oldest goals.
It began to be used successfully throughout the technology industry, although somewhat
behind the scenes. Some of the success was due to increasing computer power and some was
achieved by focusing on specific isolated problems and pursuing them with the highest
standards of scientific accountability. Still, the reputation of AI, in the business world at least,
was less than pristine. Inside the field there was little agreement on the reasons for AI's
failure to fulfil the dream of human level intelligence that had captured the imagination of the
world in the 1960s. Together, all these factors helped to fragment AI into competing subfields
focused on particular problems or approaches, sometimes even under new names that
disguised the tarnished pedigree of "artificial intelligence". AI was both more cautious and
more successful than it had ever been.

Milestones and Moore's law

On 11 May 1997, Deep Blue became the first computer chess-playing system to beat a
reigning world chess champion, Garry Kasparov. The super computer was a specialized
version of a framework produced by IBM and was capable of processing twice as many
moves per second as it had during the first match (which Deep Blue had lost), reportedly
200,000,000 moves per second. The event was broadcast live over the internet and received
over 74 million hits.
20

In 2005, a Stanford robot won the DARPA Grand Challenge by driving autonomously for
131 miles along an unrehearsed desert trail. Two years later, a team from CMU won
the DARPA Urban Challenge by autonomously navigating 55 miles in an Urban environment
while adhering to traffic hazards and all traffic laws. In February 2011, in a Jeopardy! quiz
show exhibition match, IBM's question answering system, Watson, defeated the two greatest
Jeopardy! champions, Brad Rutter and Ken Jennings, by a significant margin.

These successes were not due to some revolutionary new paradigm, but mostly on the tedious
application of engineering skill and on the tremendous increase in the speed and capacity of
computer by the 90s. In fact, Deep Blue's computer was 10 million times faster than
the Ferranti Mark 1 that Christopher Strachey taught to play chess in 1951. This dramatic
increase is measured by Moore's law, which predicts that the speed and memory capacity of
computers doubles every two years, as a result of metal–oxide–
semiconductor (MOS) transistor counts doubling every two years. The fundamental problem
of "raw computer power" was slowly being overcome.

In the first decades of the 21st century, access to large amounts of data (known as "big
data"), cheaper and faster computers and advanced machine learning techniques were
successfully applied to many problems throughout the economy. In fact, McKinsey Global
Institute estimated in their famous paper "Big data: The next frontier for innovation,
competition, and productivity" that "by 2009, nearly all sectors in the US economy had at
least an average of 200 terabytes of stored data".
By 2016, the market for AI-related products, hardware, and software reached more than 8
billion dollars, and the New York Times reported that interest in AI had reached a
"frenzy. The applications of big data began to reach into other fields as well, such as training
models in ecology and for various applications in economics. Advances in deep
learning (particularly deep convolutional neural networks and recurrent neural networks)
drove progress and research in image and video processing, text analysis, and even speech
recognition.

Deep learning
Deep learning is a branch of machine learning that models high level abstractions in data by
using a deep graph with many processing layers. According to the Universal approximation
theorem, deep-ness isn't necessary for a neural network to be able to approximate arbitrary
continuous functions. Even so, there are many problems that are common to shallow
networks (such as overfitting) that deep networks help avoid.  As such, deep neural networks
are able to realistically generate much more complex models as compared to their shallow
counterparts.
However, deep learning has problems of its own. A common problem for recurrent neural
networks is the vanishing gradient problem, which is where gradients passed between layers
gradually shrink and literally disappear as they are rounded off to zero. There have been
many methods developed to approach this problem, such as Long short-term memory units.
State-of-the-art deep neural network architectures can sometimes even rival human accuracy
in fields like computer vision, specifically on things like the MNIST database, and traffic sign
recognition.
Language processing engines powered by smart search engines can easily beat humans at
answering general trivia questions (such as IBM Watson), and recent developments in deep
learning have produced astounding results in competing with humans, in things like Go and
Doom (which, being a First-Person Shooter game, has sparked some controversy).
21

Big data refers to a collection of data that cannot be captured, managed, and processed by
conventional software tools within a certain time frame. It is a massive amount of decision-
making, insight, and process optimization capabilities that require new processing models. In
the Big Data Era written by Victor Meyer Schonberg and Kenneth Cooke, big data means
that instead of random analysis (sample survey), all data is used for analysis. The 5V
characteristics of big data (proposed by IBM): Volume, Velocity, Variety, Value Veracity.
The strategic significance of big data technology is not to master huge data information, but
to specialize in these meaningful data. In other words, if big data is likened to an industry, the
key to realizing profitability in this industry is to increase the "Process capability" of the data
and realize the "Value added" of the data through "Processing".
Artificial general intelligence
Artificial intelligence is a branch of computer science that attempts to understand the essence
of intelligence and produce a new intelligent machine that responds in a manner similar to
human intelligence. Research in this area includes robotics, speech recognition, image
recognition, Natural language processing and expert systems. Since the birth of artificial
intelligence, the theory and technology have become more and more mature, and the
application fields have been expanding. It is conceivable that the technological products
brought by artificial intelligence in the future will be the "container" of human wisdom.
Artificial intelligence can simulate the information process of human consciousness and
thinking. Artificial intelligence is not human intelligence, but it can be like human thinking,
and it may exceed human intelligence. Artificial general intelligence is also referred to as
"strong AI", "full AI” or as the ability of a machine to perform "general intelligent action".
Academic sources reserve "strong AI" to refer to machines capable of experiencing
consciousness.

DO YOU KNOW?
China has seen 500% increase in annual robot
installations since 2012.
CHAPTER –4
22

CHAPTER _ 4

TYPES OF ARTIFICIAL INTELLIGENCE

Although AI is undoubtedly multifaceted, there are specific types of artificial intelligence

under which extended categories fall.

What are the four types of artificial intelligence?

1)Reactive machines
2)Limited memory
3)Theory of mind
4)Self-awareness
Types of artificial intelligence
There are a plethora of terms and definitions in AI that can make it difficult to navigate the
difference between categories, subsets, or types of artificial intelligence – and no, they’re not
all the same. Some subsets of AI include machine learning, big data, and natural language
processing (NLP); however, this article covers the four main types of artificial intelligence:
reactive machines, limited memory, theory of mind, and self-awareness.

These four types of artificial intelligence comprise smaller aspects of the general realm of AI.

Type I: Reactive machines

Reactive machines are the most basic type of AI system. This means that they cannot form
memories or use past experiences to influence present-made decisions; they can only react to
currently existing situations – hence “reactive.” An existing form of a reactive machine is
Deep Blue, a chess-playing supercomputer created by IBM in the mid-1980s.
23

Deep Blue was created to play chess against a human competitor with intent to defeat the
competitor. It was programmed with the ability to identify a chess board and its pieces while
understanding the pieces’ functions. Deep Blue could make predictions about what moves it
should make and the moves its opponent might make, thus having an enhanced ability to
predict, select, and win. In a series of matches played between 1996 and 1997, Deep Blue
defeated Russian chess grandmaster Garry Kasparov 3½ to 2½ games, becoming the first
computerized program to defeat a human opponent.
Deep Blue’s unique skill of accurately and successfully playing chess matches highlight its
reactive abilities. In the same vein, its reactive mind also indicates that it has no concept of
past or future; it only comprehends and acts on the presently-existing world and components
within it. To simplify, reactive machines are programmed for the here and now, but not the
before and after.
Reactive machines have no concept of the world and therefore cannot function beyond the
simple tasks for which they are programmed. A characteristic of reactive machines is that no
matter the time or place, these machines will always behave the way they were programmed.
There is no growth with reactive machines, only stagnation in recurring actions and
behaviours.

Type II: Limited memory

Limited memory is comprised of machine learning models that derive knowledge from
previously-learned information, stored data, or events. Unlike reactive machines, limited
memory learns from the past by observing actions or data fed to them in order to build
experiential knowledge.
Although limited memory builds on observational data in conjunction with pre-programmed
data the machines already contain, these sample pieces of information are fleeting. An
existing form of limited memory is autonomous vehicles.
Autonomous vehicles, or self-driving cars, use the principle of limited memory in that they
depend on a combination of observational and pre-programmed knowledge. To observe and
understand how to properly drive and function among human-dependent vehicles, self-
driving cars read their environment, detect patterns or changes in external factors, and adjust
as necessary.
Not only do autonomous vehicles observe their environment, but they also observe the
movement of other vehicles and people in their line of vision. Previously, driverless cars
without limited memory AI took as long as 100 seconds to react and make judgments on
external factors. Since the introduction of limited memory, reaction time on machine-based
observations has dropped sharply, depicting the value of limited memory AI.

Type III: Theory of mind

What constitutes theory of mind is decision-making ability equal to the extent of a human
mind, but by machines. While there are some machines that currently exhibit humanlike
24

capabilities (voice assistants, for instance), none are fully capable of holding conversations
relative to human standards. One component of human conversation is having emotional
capacity or sounding and behaving like a person would in standard conventions of
conversation.
This future class of machine ability would include understanding that people have thoughts
and emotions that affect behavioural output and thus influence a “theory of mind” machine’s
thought process. Social interaction is a key facet of human interaction, so to make theory of
mind machines tangible, the AI systems that control the now-hypothetical machines would
have to identify, understand, retain, and remember emotional output and behaviours while
knowing how to respond to them.
From this, said theory of mind machines would have to be able to use the information derived
from people and adapt it into their learning centres to know how to communicate with and
treat different situations. Theory of mind is a highly advanced form of proposed artificial
intelligence that would require machines to thoroughly acknowledge rapid shifts in emotional
and behavioural patterns in humans, and understand that human behaviour is fluid; thus,
theory of mind machines would have to be able to learn rapidly at a moment’s notice.
Some elements of theory of mind AI currently exist or have existed in the recent past. Two
notable examples are the robots Kismet and Sophia, created in 2000 and 2016, respectively.
Kismet, developed by Professor Cynthia Breazeal, was capable of recognizing human facial
signals (emotions) and could replicate said emotions with its face, which was structured with
human facial features: eyes, lips, ears, eyebrows, and eyelids.
Sophia, on the other hand, is a humanoid bot created by Hanson Robotics. What distinguishes
her from previous robots is her physical likeness to a human being as well as her ability to see
(image recognition) and respond to interactions with appropriate facial expressions.
Sophia the humanoid bot
These two humanlike robots are samples of movement toward full theory of mind AI systems
materializing in the near future. While neither fully holds the ability to have full-blown
human conversation with an actual person, both robots have aspects of emotive ability akin to
that of their human counterparts – one step toward seamlessly assimilating into human
society.

Type IV: Self-awareness

Self-aware AI involves machines that have human-level consciousness. This form of AI is
not currently in existence but would be considered the most advanced form of artificial
intelligence known to man.
Facets of self-aware AI include the ability to not only recognize and replicate humanlike
actions, but also to think for itself, have desires, and understand its feelings. Self-aware AI is
an advancement and extension of theory of mind AI. Where theory of mind only focuses on
the aspects of comprehension and replication of human practices, self-aware AI takes it a step
further by implying that it can and will have self-guided thoughts and reactions.
25

Will self-aware AI be reachable in our lifetime?

We are presently in tier three of the four types of artificial intelligence, so believing that we
could potentially reach the fourth (and final?) tier of AI doesn’t seem like a far-fetched idea.
But for now, it’s important to focus on perfecting all aspects of types two and three in AI.
Sloppily speeding through each AI tier could be detrimental to the future of artificial
intelligence for generations to come.

CHAPTER – 5
Applications of Artificial Intelligence

Often misconceived as a replacement for human power, the concept of AI as a

technological aid is much larger, wider and pervasive. It has created greater trust,
however, for the hospitality industry, showing the promise of transforming its
processes, services and facilities through AI-powered robotics. Today, the hotel
industry, where comfort-defining advancements are most rapidly incorporated, has
sophisticated its entire system with the adoption of many innovative methods used
for providing satisfying customer service.

Having an intelligent hotel that surpasses customer expectations is the strategy many modern
hospitality leaders and service partners conjure. What adds viability to this concept is the
thought of making it all enhanced with AI-powered care, support and service. AI robots not
only diminish the human involvement with its voice-activated assistants but also smarten the
way hotel guest service is delivered to customer’s satisfaction. From customer’s personal
choices to their smallest of needs, AI-enabled hotel concierge bots can offer minute service
and careful assistance.

Here are some of the examples where Artificial intelligence is being applied: -
26

 Artificial Intelligence in Health care: -

AI in healthcare is often used for classification, whether to automate initial evaluation of a

CT scan or EKG or to identify high risk patients for population health. AI is being applied to
the high cost problem of dosage issues—where findings suggested that AI could save $16
billion.

 In 2016, a ground-breaking study in California found that a mathematical formula developed
with the help of AI correctly determined the accurate dose of immunosuppressant drugs to
give to organ patients.

According to Bloomberg Technology, Microsoft has developed AI to help doctors find the
right treatments for cancer.

For example: -

In detail, there are more than 800 medicines and vaccines to treat cancer. This
negatively affects the doctors, because there are too many options to choose from, making it
more difficult to choose the right drugs for the patients. Microsoft is working on a project to
develop a machine called "Hanover”. Its goal is to memorize all the papers necessary to
cancer and help predict which combinations of drugs will be most effective for each patient. 

Study is using artificial intelligence to try to monitor multiple high-risk patients, and this is
done by asking each patient numerous questions based on data acquired from live doctor to
patient interactions.

One study was done with transfer learning, the machine performed a diagnosis similarly to a
well-trained ophthalmologist and could generate a decision within 30 seconds on whether or
not the patient should be referred for treatment, with more than 95% accuracy.

According to CNN, a recent study by surgeons at the Children's National Medical Canter in
Washington successfully demonstrated surgery with an autonomous robot. The team
27

supervised the robot while it performed soft-tissue surgery, stitching together a pig's bowel
during open surgery, and doing so better than a human surgeon, the team claimed.

 Artificial Intelligence in Automotive industry: -

Advancements in Artificial Intelligence have contributed to the growth of the automotive

industry through the creation and evolution of self-driving vehicles.  There are over 30
companies utilizing AI into the creation of self-driving cars.

Many components contribute to the functioning of self-driving cars. These vehicles

incorporate systems such as braking, lane changing, collision prevention, navigation and
mapping. Together, these systems, as well as high performance computers, are integrated into
one complex vehicle.

Recent developments in autonomous automobiles have made the innovation of self-driving

trucks possible, though they are still in the testing phase. Recent developments in
autonomous automobiles have made the innovation of self-driving trucks possible, though
they are still in the testing phase. 

For example: -

 Daimler, a German automobile corporation, is testing the Freightliner

Inspiration which is a semi-autonomous truck that will only be used on the highway.

One main factor that influences the ability for a driver-less automobile to function is
mapping. In general, the vehicle would be pre-programmed with a map of the area being
driven. This map would include data on the approximations of street light and curb heights
for the vehicle to be aware of its surroundings. 

 Some self-driving cars are not equipped with steering wheels or brake pedals, so there has
also been research focused on creating an algorithm that can maintain a safe environment for
the passengers in the vehicle through awareness of speed and driving conditions.
28

Another best example to explain the growth of Artificial Intelligence in Automotive Industry
can be elaborated with the help of one of the best Automobile company” TESLA”.

Each Tesla computer has two AI chips for a redundant design for better safety. Each Tesla AI
chip runs at 2GHz and performs 36 trillion operations per second. That performance is
possible because Tesla optimized the chips for self-driving cars and dropped anything more
general purpose. Both these Ai chips process the best Autopilot system in the market.

Tesla Autopilot is an advanced driver-assistance system feature offered by Tesla that has

lane cantering, adaptive cruise control, self-parking, the ability to automatically change lanes,
navigate autonomously on limited access freeways, and the ability to summon the car to and
from a garage or parking spot.

 Artificial Intelligence in Finance and Economics: -

The use of AI in banking can be traced back to 1987 when Security Pacific National Bank in
US set-up a Fraud Prevention Task force to counter the unauthorized use of debit cards.
Programs like Kasisto and Money stream are using AI in financial services. Banks use
artificial intelligence systems today to organize operations, maintain book-keeping, invest in
stocks, and manage properties. AI can react to changes overnight or when business is not
taking place.

AI is beneficial here because ML algorithms can analyse millions of data points to detect
fraudulent transactions that would tend to go unnoticed by humans. At the same time ML
helps improve the precision of real-time approvals and reduces the number of false rejections.
In August 2001, robots beat humans in a simulated financial trading competition. AI has the
potential to disrupt and refine the existing financial services industry. AI has also reduced
fraud and financial crimes by monitoring behavioral patterns of users for any abnormal
changes or anomalies.  Robotic process automation (RPA) uses artificial intelligence to train
and teach software robots to process transactions, monitor compliance and audit processes
automatically.
For example: -
29

 AI based buying and selling platforms have changed the law of supply and
demand in that it is now possible to easily estimate individualized demand and supply curves
and thus individualized pricing.

AI machines reduce information asymmetry in the market and thus making

markets more efficient while reducing the volume of trades. Furthermore, AI in the markets
limits the consequences of behaviour in the markets again making markets more efficient.
Other theories where AI has had impact include in rational choice, rational
expectations, game theory, Lewis turning point, portfolio optimization and counterfactual
thinking.. In August 2019, the AICPA introduced AI training course for accounting
professionals.

 Artificial Intelligence in Cybersecurity: -

The cybersecurity arena faces significant challenges in the form of large scale hacking attacks
of different types which harm organizations of all kinds and create billions of dollars in
business damage. Cyber security companies are teaching AI systems to detect viruses and
malware by using complex algorithms, so AI can then run pattern recognition in software.
AI systems can also be used in situations of multi-factor authentication to provide access to
their users.

AI is trained by consuming billions of data artifacts from both structured and unstructured
sources, such as blogs and news stories. Through machine learning and deep learning
techniques, the AI improves its knowledge to understand cybersecurity threats and cyber risk.

 Artificial intelligence and Natural Language Processing (NLP) have begun to be used by
security companies - for example SIEM (Security Information and Event Management)
solutions. The more advanced of these solutions use AI and NLP to automatically sort the
data in networks into high risk and low risk information. This enables security teams to focus
30

on the attacks that have the potential to do real harm to the organization, and not become
victims of attacks such as Denial of Service (DoS), Malware and others.

USE OF CHATBOTS IN TOURISM AND HOSPITALITY

Chatbots controlled by artificial intelligence play a very important role in tourism industry.
Th e term “chatbot” is coined from words “chat” and “robot”, thus undoubtedly explaining
their purpose. Chatbots are essentially computer programs that stimulate a human
conversation using natural language. Th e first chatbot called ELIZA was developed in 1966
and was developed to trick its users by making them believe that they were having a
conversation with a real human being Chatbots have evolved to a great extent since the
introduction of the first model and their main fields of use are in retail, customer services,
decision making support, state of the art payment systems and online community building.
Since chatbots have proven themselves worthy of investment and have shown tremendous
growth and market potential, their use in tourism industry increased accordingly. Tourists’
need for reliable sources of information is constantly increasing, so travel chatbots are
designed to help fulfil those needs and requirements. Travel chatbots are enhancing travel
experience as they guide tourists through each aspect of their trip, from booking to general
travel advice. Depending on the platform they are incorporated in, as well as on their level of
sophistication and ability to recommend, there are three different types of travel chatbots:
customer service bots, Facebook chatbots and AI empowered travel bots.
Customer service travel bots
Customer service travel bots are the most basic type of chatbots which are incorporated in the
travel companies’ websites. Th ese bots simply use the list of
Information Technology in Education & Digital Transformation, Culture and Creative
Industries
SINTEZA 2019 INTERNATIONAL SCIENTIFIC CONFERENCE ON INFORMATION
TECHNOLOGY AND DATA RELATED RESEARCH
Previously determined automated answers and are therefore limited to only helping users
navigate the website, without being able to help them with booking. Review of scientific
literature and web-based resources showed that there were more customer service travel bots
available a couple of years ago than today. It seems as if the travel companies realized the
downsides of the insufficiently developed chatbots and have therefore decided to eliminate
them from their websites. These companies include Booking.com, On the Beach and Tap
Portugal. However, there are also those who continue using customer service travel bots, such
as Copa Airlines, Amtrak and Air New Zealand.

DO YOU KNOW?
Deep Blue was the first AI robot, made in 1996.
It was a chess playing computer which won its first game
31

Facebook chatbots

Chatbots incorporated in Facebook Messenger offer far more possibilities for the tourists.
Besides simply helping them navigate a certain page, these chatbots are more interactive and
can help users with booking through a two-way conversation. Even though the users have to
put in the same data as they would by booking the trip by themselves, it seems that Facebook
chatbots are achieving good results when it comes to users’ satisfaction and are proving to be
a good investment. In 2018 there were 300,000 active chatbots on Facebook Messenger,
which is three times as many as the year prior.
One of the most successful Facebook chatbots is Expedia’s chatbot. In order to start
communicating with Expedia via their chatbot, the users just need to log in to their Facebook
accounts and visit Expedia’s page \, and the chat window will pop up automatically. There is
one restriction when it comes to the Expedia chatbot compared to the services normally
provided by Expedia, and it is that the chatbot can only help users with booking a hotel or
managing their trip, but cannot offer services in search of flights, cruises nor cars. Another
example of a well implemented Facebook chatbot is the Skyscanner chatbot. The distinctive
features of this chatbot are offering the cheapest destinations from the nearest airport, as well
as categorizing flight in cheapest, shortest and best.

In addition, in case the tourist just wants some inspiration, he or she can type “anywhere”,
and the chatbot will return some interesting suggestions. Kayak Facebook chatbot offer its
services for fights, hotels, rental cars, activities and trip updates, which probably makes it the
most comprehensive chatbot out there. It also has a memory of previous conversations and
uses Kayak search history for personalization. Skyscanner and Kayak chatbots are not only
available for Facebook Messenger users, but for Slack, Amazon Alexa, Skype and Google
32

Assistant as well. Most of the travel companies with chatbots available are either airline
companies or travel search engines.

One of the rare cases of tourist board with Facebook chatbot is Faroe Island tourist board.
Besides being available on their official Facebook page, users can also start communication
with Faroe Island chatbot on their official website via Facebook Messenger extension.

AI empowered travel bots

Th ese chatbots are somewhat different from the previous two groups. Even though they still
rely on instant messaging in order to communicate with the users, what differentiates them
from the previously mentioned chatbots is their ability to make recommendations. They
manage to do it with the help of certain algorithms and access to information, as well as
connection with other apps.

KLM Royal Dutch Airlines is a good example of a chatbot that went one step further than
the ones already mentioned. Besides having Facebook Messenger chatbot offering its help to
tourists, this company added one more interesting feature: their chatbot, called BB, can help
tourists pack for their trip. It just needs simple information such as the destination, the date
and the trip length, and it will tell them everything they need to pack. Th is feature is
available on Google Home Assistant. Another example is Hello Chipmunk, a virtual travel
agent which offers a plethora of services aimed at helping users plan their trip and book all
parts of it.DO YOU KNOW?
In one trial, AI caught 95% of dangerous melanomas, but
doctors got just 87%.
However, the most distinguished feature offered by Hello Hipmunk is combining of tourists’
emails and calendar information in order to create personalized travel recommendations. It
can also build an itinerary for the user’s trip and share it with others, such as family or
colleagues. It can be accessed on Facebook Messenger and Skype. Th ere is also HelloGBye
travel assistant aimed at frequent fliers and small businesses. The difference between Hello
Buy travel assistant and other ones is the fact that it is an individual app, currently available
to IOS users only.

However, even though downloading an app, especially the one that is not free, is an obstacle
for some users, this app is claimed to be able to address travel requests involving not only
one, but multiple people, with a detailed flight and hotel itinerary in under 30 seconds, thus
making up for the troubles caused to a certain extent. Last but not least example of AI
empowered travel bots is called Sam. Like many other virtual travel assistants, it can be used
by an individual user, however, its most important features are more useful for frequent flyers
and business travellers.
33

First, Sam can help users book their flights, and then it will automatically integrate all the
trips in a useful itinerary. If anything arises, such as bad weather forecast, Sam will inform
the user of it to help him or her pack better.
In addition, it will offer to organize the transport to the airport by connecting with local
services approved by the traveller’s organization. Immediately after landing, Sam already has
the information on the baggage claim the traveller should go to, and it can also inform
traveller’s family members about the safe flight.

In addition, it can offer travel guide of the destination and it will be in touch with the traveller
throughout the whole trip, informing him or her about bad traffic and delayed flights for
example. All these features are enabled by integrating with other apps, such as Avis, Uber
and Google Maps. Considering the complexity of this travel assistant, it is an app that needs
to be downloaded, and is available for both IOS and Android users.
4. USE OF ROBOTS IN TOURISM AND HOSPITALITY
Robots are intelligent physical devices with a certain degree of autonomy, mobility, and
sensory capabilities that allow them to perform intended tasks without a human intervention.
Th e least sophisticated industrial robots have been used in tourism and hospitality sector for
at least 50 years in different production processes, such as food preparation. As the level of
autonomy of robots increases, as well as their ability of social interaction, there are
professional service robots and personal service robots, both developed around two decades
ago and being further developed daily.

Professional service robots in tourism and hospitality include room cleaning robots, self-
check-in kiosks and automated border control gates available at many airports, conveyor belt
restaurants which are frequent in major cities, as well as many others which will be presented
below. Personal service robots are the ones used by individuals for non-commercial tasks and
will therefore not be further investigated in this paper.
34

The number of professional service robots used in tourism and hospitality increases every
day, as well as their complexity. For example, nowadays there is a robotic suitcase available,
which makes traveling a lot easier. It has the ability to follow its owner by itself and avoid
any obstacles, thus eliminating the need to carry the suitcase. Robots are being introduced as
travel agents, as well as airport security. In 2014 a restaurant in China introduced robot
waiters.

Th e following year there were testing of the robotic hotel information agents, and in 2016,
robots were introduced as servers in hotels. A robot server was built and programmed to
deliver extra towels, toothpaste or other necessities to the guest rooms]. The hotel staff is
required in order to introduce the room number on the robot’s touch screen, after that the
robot uses elevator to go to the designated room.
Th e only way of communicating these robots were capable of was through typed messages
that appeared on their screens. The next step for robots in hospitality industry was a fully
automated hotel that opened its doors to visitors. Henna hotel in Japan is the world’s first
hotel staff ed exclusively by robots. Robots speaking multiple languages greet and help the
customers at the front desk, with one of them being a dinosaur. There are robotic arms which
are in charge of storing guests’ luggage, and the rooms are excessed by facial recognition
systems. This may seem a little over the top.

However, this hotel is not the only one introducing robots to all the different positions
available in hotels, it is merely the only one using robots exclusively. For example, Hilton
Hotel in McLean, Virginia, introduced Connie, robotic concierge that helps guests get around
the hotel, answers routine questions about services, and will perhaps one day be able to
translate inquiries for guests and staff. Connie is able to interact with visitors by using speech
recognition technology in order to respond to their queries. In addition, it also learns from
each interaction, meaning the more it is used, the better its responses will become.
In addition, there are two Chinese Marriott hotels that have also introduced facial recognition
technology to check-in, while Japan Airlines is investigating this idea as well.
5. CONCLUSION
Th e revolution brought about with the development of ICTs has caused dramatic changes in
tourism and hospitality industry. Service automation, artificial intelligence and robots have
provided tourism companies and organizations with vast new opportunities. Artificial
intelligence is a new form of intelligence which has the ability to synthesize several different
ideas simultaneously.

It is able to respond to questions and provide valuable information to customers. Modern

tourists are more demanding than ever, expecting almost immediate responses on online
platforms, and artificial intelligence allows businesses to deliver response times that would be
35

impossible for humans. In addition, chatbots and AI empowered travel bots enable
personalization of the tourism offer, as well as improvement of operations and increase of
productivity while delivering consistent product quality.

However, one of the main downsides of using robots in tourism and hospitality is the lack of
personalized service, which is one of the most important characteristics of the sector.
Artificial intelligence is still not that widespread in tourism sector, but it is expected to be
used more often in the future in order to increase the quality of the products and services.
Th is paper relied on scientific journals and web-based resources to try to continue the
discussion on artificial intelligence applications in tourism which has just started recently.
The paper presented numerous applications, however, it only scratched the surface of the
subject which is gaining more importance daily and is being further developed at a very fast
pace.

DO YOU KNOW?
An algorithm was able to detect an Ebola outbreak more
than a week before it was announced by the World
Health Organization.
36

The Indian food industry has undergone a huge transformation in terms of adoption of new
age technologies. The new-age organisations aren’t shying away from using new
technologies like robotics, artificial intelligence, machine learning or computer vision to
invent and optimise solutions. Though highly-competitive in nature, this sector has immense
potential to grow — and this has been validated with the use of these technologies. Use of
new tech especially comes in handy when streamlining processes and offering consumer-
specific services.
While the likes of Zomato, Swiggy and FoodPanda have already made a stride into the
FoodTech domain, we decided to bring other unconventional startups in the space that are
revolutionising the industry with the exceptional adoption of these technologies.

Here are 8 such start-ups which are listed in an alphabetical order:

2| Dishq
This Bengaluru-headquartered start up founded in 2015 leverages food science and ML to
understand and predict people’s taste. With its AI-based solutions, the startup is trying to help
the food and beverages industry with the key challenges including recommendations,
personalisation, menu and product development, insights and trends, among others. With its
technology, the start up is helping users to discover delicious food with much ease. The start
up claims to be powering more than 30 million recommendations, helping 176,000 people
make great food choices across more than 1,000 restaurant vendors. It is founded by Sai
(exZomato) and Kishan who are combining their extensive experience from FoodTech
companies to create their proprietary recommendation technology.

dishq, a Bengaluru-based artificial intelligence starts up, that leverages food science and
machine learning to predict people’s taste, announced a pre-seed investment of $400,000.
This round has been funded by several investors including, Techstars’ first food focused
accelerator called Farm to Fork, and Arts Alliance.
37

Key technologies used: Machine Learning, Artificial Intelligence

3| Euphotic Labs
Easing out the cooking routine, especially for working professionals is Bengaluru-based
Euphotic Labs — the youngest startup in this list. They are building an automated cooking
machine that would help people overcome the laborious task of cooking. It is founded by
Yatin Varricchio and the team comprises of professionals from multiple disciplines. With the
help of recent advancements in AI, they are building a fully-automated kitchen at the ease of
home. They are pushing the boundaries to stick to their principals of customer obsession and
being the best in whatever they do.

Key technologies used: Robotics, Computer Vision

4| Gulpie
As the website notes, Gulpie is a personal food assistant that uses powerful AI to rate and
pick restaurants that suit a user’s diet, taste and health preference. The personal food assistant
is powered by a recommendation engine that learns about users’ preferences and uniquely
suggests restaurants. It can also pick preferences, allergen contents such as peanut, gluten,
concerns such as diabetes and vegan, and much more. Using their HungerChat, users can add
friends to a chat and discover restaurants from feed of friends’ recommendations. As opposed
to other food discovery apps, Gulpie is centred around the user’s personality, friends and
time. As the founders note, their long-term vision is to build collective intelligence based on
multiple user-facing products that solve for contextual personalisation. It has offices in
Bengaluru and San Francisco Bay area.

Key technologies used: Artificial Intelligence, Machine Learning

38

5| Mechanical Chef
With a cooking robot for Indian cuisines, this startup based out of Bengaluru is all that as its
name suggests. Founded in 2017, the founders came up with a challenge of developing
cooking robots for the Indian market that can cook Indian dishes with ease. It was co-founded
by Arpit Sharma, an IIT Kanpur graduate and Cohan Sujay Carlos, an ML researcher. The
company has been able to make a prototype till now which looks like a top-heavy bundle of
bottles whirling, spinning and measuring the ingredients to create the perfect recipe. It is also
open to the public to test the robot and provide feedback that will help them inculcate all the
necessary features.

It cooks dishes such as matar paneer, bisi bele bath, rice, dal tadka, chhole, rasam, sambhar,
upma, poha, capsicum sabji, among others.

Key technologies used: Robotics, Automation, AI

6| Nymble labs
At Nymble Labs they are developing smart cooking assistant to help people live healthier by
cooking fresh food every day. The startup is currently developing a compact table-top
appliance for cooking one-bowl meals and curries. Headquartered in Bengaluru and founded
in 2016, the company is a graduate of the Bosch DNA Start-Up Accelerator Program. They
are building users own personal cook by developing a smart kitchen appliance that can cook
food tailored to the user’s taste. It works by choosing the user’s favourite recipe from a
variety of menu options, feeding the necessary fresh ingredients into the machine and offer
freshly prepared food while a user relaxes. Their hardware ecosystem can cater to all the
kitchen requirements, while their AI and machine learning backed software makes the
weirdest dreams possible.

Key technologies used: Computer Vision, Machine Vision, Machine Learning

7| Robot: A Robot Theme Restaurant In Chennai
39

The robot theme restaurant in Chennai called the ‘Robot’ was founded by Venkatesh
Rajendran and Karthik Kannan.

(Venkatesh Rajendran & Karthik Kannan)

Formerly known as MOMO, this unique restaurant has robot waiters placing your order on
your table. Re-launched last year to make it more in tune with its theme, the food can be
ordered on iPhones which are conveniently located on every table and are sent to the kitchen
directly. Once the order is ready, it is delivered to the respective tables by designated robot
waiters. According to their website, this unique experience is now expanded to Coimbatore.
As the founders believe, the hotel business is no longer just about the food, it the experience
that matters. And robot’s waiters are a perfect way to offer that experience.
40

Key technologies used: Robotics, Automation

8| SP Robotics’ Butler ‘O’ Bistro

SP Robotic Works is again a Chennai based start-up that provides robotic education to school
and college students via the use of technologies such as IoT, image processing, virtual reality
and others. The company announced the launch of its food serving robot named BOB in
2017, which was developed by a division of SP Robotic Works, called Kidobotikz. BOB or
Butler ‘O’ Bistro serves food in Bengaluru’s VR mall and was developed by Kidobotikz
community members aged between 13 and 25. Once the food is ordered at the counter and is
readied in the kitchen, it is brought by the robot to the customer. Pranavan and Sneha Priya,
Anna University alumni started SP Robotics Work in 2012 to decrease the use of manpower
for monotonous, hazardous and unstable works.

Key technologies used: Robotics, Automation

In India, Robot restaurants franchise has become a rage people are visiting these restaurants
to enjoy this unreal experience. In fact, a Robot restaurant gets a minimum of 300-500 calls a
day and remains booked almost every day.
Franchising the Way Forward

Starting a Robot restaurant is not as easy as it seems, in fact, it’s much more difficult than
starting a normal restaurant. For starting a robot service restaurant, buying robots would be
easier but the next steps are the major challenges you might face. For starters, after
purchasing the robots, you will have to import the bots to India and the Customs Department
did not have an HS code, a unique code assigned to each product, for assembled robots. You
will be required to get special permission, to bring them here. You will also be required to
undergo special training from foreign countries for installation of the bots and to maintain
them.
41

Now, all these processes might seem tedious, but the franchise model has paved an easy way
out for aspiring entrepreneurs who want to invest in the robot restaurant concept. The
franchisor takes care of the training, importing of the robots etc. and you can start a restaurant
without hassle within a start-up investment of INR 2 Crore.

DO YOU KNOW?

The best five countries for an AI job are – China, USA,

Japan, UK, and India.
42

CHAPTER- 6

Challenges of introduction of artificial intelligence to Indian

hospitality industry
Predictions about the growth of artificial intelligence (AI) and robotics are increasingly closer
to reality, especially with regard to the experience of guests during their stay and the
automation of reservation processes during the trip.
This trend is increasingly strong in the sector and, for this reason, SiteMinder, the market's
leading platform for technology solutions for the hotel sector, exposes different examples of
the advantages and challenges offered by the automation of services in a hotel.
Currently, several hoteliers have already implemented the use of robots in their properties,
more as an innovation strategy than as a commercial strategy, since the technology they use
to manage their accommodations.
The challenges which will be faced by the Indian hospitality industry for implementing
artificial intelligence to the hospitality industry are as follows:

 TECHNICAL KNOWLEDGE

Over the last two years, we have witnessed a steady increase in our percent of
readership in India.

Given the Indian government’s recent focus on developing a plan for artificial
intelligence, we decided to apply our strengths (deep analysis of AI applications and
implications) to determine (a) the state of AI innovation in India  and (b) strategic
insights to help India survive and thrive in a global market with the help of AI
initiatives.

India is emerging as the hub for “Digital Skills” – Digital Innovation Hub The country
spends $1.6 bn annually on training workforce in the sector.

But where does India stand today in AI?

India remains a laggard way behind! Successive governments are responsible for the
failure to formulate an action plan.  But there is a need to think big and take bold
action to harness the technology’s potential and address the challenges to help India
survive and thrive in a global market.
 
 
43

Skills which are required for the concept of AI learning.

Computer Science Fundamentals and Programming.
Probability and Statistics.
Data Modeling and Evaluation
Applying Artificial Learning Algorithms and Libraries.
Software Engineering and System Design
India is still lacking in the field of skills and knowledge which is required to produce artificial
intelligence to work in hospitality industry.
India is still behind USA and China in the artificial intelligence sector. But India is doing
growth in artificial intelligence.

Capital requirement
How much does artificial intelligence cost, though? It’s a question companies of all sizes
(from enterprises to start-ups) are asking. Good news, this AI pricing guide covers all your
questions about the cost of artificial intelligence, from the average rates to the pricing factors
that determine what you pay.
Keep reading to learn more about the average cost of artificial intelligence! Or, for more
information about AI pricing, contact us online or call us at 888-256-9448 to chat with an
experienced WebEx strategist.
44

AI pricing in 2020
In 2020, companies can pay anywhere from $0 to more than $300,000 for AI software. This
software can range from a solution provided by a third-party to a custom platform developed
by a team of in-house or freelance data scientists.

If your company uses a third-party AI software, like for a pre-built chatbot, expect to pay up
to $40,000 per year. In some cases, your business may find free chatbot applications that
meet your needs, though these mostly work for entrepreneurial operations.
In comparison, custom AI solutions cost anywhere from $6000 to over $300,000.
This price tag includes development and rollout. Ongoing AI services, like for consulting,
generally cost less and depend on the consultant’s hourly fee. Most AI consultants charge
$200 to $350 per hour.
What factors determine the cost of artificial intelligence?
When it comes to artificial intelligence, a range of factors influence AI software costs. From
your preference for a custom or pre-built solution to the type of AI required, like a virtual
assistant or analysis system, dozens of decisions will influence what your business invests in
AI.
Analysis systems
An analysis system helps your business interpret and take action from large quantities of data.
These kind of analysis system and service costs around $600 per page.
Virtual assistants
A virtual assistant helps your company complete general, everyday tasks while saving time.
Such type of virtual assistant AI can cost up to 6000$ to 15000$.
For an insurance fraud detection tool, the price ranges between $100k-300k. However, it all
depends on the project scope and complexity, customer and system requirements, as well as
other factors, mentioned earlier.
The amount of capital investment which is required for the artificial intelligence is very large,
though government is also helping India by adopting various technology like "digital India".
Larger amount of capital makes it difficult for investing in AI.
AWARENESS OF TECHNOLOGY
Regardless of which industry we fall under or which department we work under, keeping up
with the technology trends is imperative. Following are the areas where technology trend
awareness skills play their significant role.
While business professionals and investors are clearly recognizing the potential of AI, to
what extent do consumers appreciate and understand this new generation of technologies?
45

To answer this question, we have surveyed the adult and got the results many of the people
do know basic about the AI and its applications and types but there are still many who don't
know about it.
Since India is booming in the field of artificial intelligence so everyone should have the basic
knowledge about the application and type of artificial intelligence as it has bright future.
Inventing new and advanced technology is not enough, creating awareness among the people
is the main part, explaining people about what they have created and where and how they can
use the technology.
All the technology which is invented should be displayed to the common people and should
be made aware about how to use them with their proper application for in various field.

Unemployment
Automation has been a major worry when it comes to work and jobs. A recently released
report by the International Labor Organization (ILO) dwells on automation and
employability. Mint investigates what the report has to say about India.
Now, India has an unemployment problem to grapple with; the creeping incursion of cheaper
and better robots into factory shop floors is set to make it worse.
The report titled “Changing Business and Opportunities for Employer and Business
Organizations" lists the percentage of work activities that can be automated using current
technology. In the case of India, 51.8% of activities can be automated. As the report points
out: “Robotic automation is having the greatest impact, replacing low-skilled jobs and simple
assembly tasks." Japan and Thailand run the risk of 55.7% and 54.8%, respectively, of their
activities being automated. Over 40% of activities can be automated across the world. This is
clearly not good news for the employed.
Who will be hurt by this automation?
The report says automation will likely impact “most jobs involving highly structured physical
activity in predictable environments, such as manufacturing and retail, alongside data
collection and processing". Jobs that have some semblance of a routine are more at threat
than others. Also, automation threatens to impact women more than men, suggests the report.
It points out that women “are a large component of the workforce in retail, business
processing outsourcing and textiles/clothing/footwear". This is primarily because automation
threatens sectors where women form a major part of the workforce.
What has been the impact of this around the world?
What is true about India is also true about other parts of the world. As the ILO report points
out, “a large proportion of businesses in the United States of America (61%), Brazil (70%) …
and Germany (65%) agreed that businesses are looking for quite different skills in new
recruits". These businesses are not always able to find candidates with the new skills. For
53% of Indian businesses it has become harder to recruit people with the skills needed.
46

What does this mean for India?

India has an unemployment crisis. Over and above that, what this report suggests is that India
also has an employability crisis. Even when firms have jobs on offer, they are unable to find
candidates with the right skills who can take on these jobs. A major reason for this lies in the
fact that education systems are not well equipped to adapt to changes at the workplace. This
has created another problem over and above unemployment.

Updated technology
Just implementation of new advanced AI technology is not enough we have some major
issues concern to the technology that we are using, as human grow, advancement in
technology also occur, so one has to be aware about the advancement in the technology.
Updates related problems are very common due to this it effects the business of the
organization since the employee are not aware of the update and have not gone through any
training, so they are not able to perform well due to this.
Proper training
Major problem using the technology is to get proper knowledge and proper training about
what they are using, training is very important part of the job because of the training and
employee can be asset of the organization since if a well skilled employee is using advanced
technology it can save money and time of the time and with the help of training a employee
gets the confidence to work better. For example if in a 5 star new technology of AI are
introduced in F&B department like a guest can place order by itself and there will no roll of
host in that part but the employee have to be given training about how to use that AI
technology so that they can easily explain to the guest how to use the technology.
So training is the most important part of any job and in case of AI technology in hospitality
industry where you have to face guest any moment it is very important to train the employee
on the technology which we are using.
47

BOND WITH GUEST

Real part of hospitality in hotel Industry is the courtesy and the bond between guest and
employee which cannot be achieved handling guest with the same feeling as your and it can
be only done with the help of human employee though robots can do much better work or are
much efficient but in hospitality industry we have to handle guest with the feelings and
courtesy.

DO YOU KNOW?

Virtual communities, Social networks and TripAdvisor have

had a profound impact on customers. This has led to more
transparency and, overall, to an improved quality of the
services provided by hospitality companies.
48

CHAPTER – 7

How Artificial Intelligence Will Affect the Indian Hospitality

Industry

Understanding intelligence has always been an important question for humanity. In the
ancient days, Aristotle was among the first ones to explore the realm of human intelligence
by contemplating on our judgement about right and wrong. Intelligence can be characterised
in many ways. The term can refer to a way of thinking or can be defined as a synonym of
acumen. In common sense, the term intelligence refers to the level of exploiting one’s skills
and knowledge. Intelligence is independent from culture and has many different types. When
talking about intelligence, we can talk about emotional, logical, cognitive, musical any many
other types of intelligence.
The possibility of creating artificial cognition - the initial idea of AI - was conceived during
the process of differentiating the many types of intelligence. The term ’artificial intelligence’
was first introduced by American computer scientist John McCarthy in 1965. The idea of
extending the definition of intelligence as a theoretical concept emerged during the
simplification of logical problem solving in computer science. Initially, AI was meant to be
an aid for theoretical thinking, mainly used for solving complex and difficult mathematical
problems. The Turing machine – designed by Alan Turing for the examination of the
relationship between programmed predictability and human intuition – also had a great
impact on the evolution and development of computer technology.
By using a series of simple questions, the Turing machine could solve problems in a way that
could easily be if the machine was ’thinking’ (Turing 1950). The system of the popular
Turing tests - that are still frequently used even today - was developed based on the Turing
machine with the synthesis of mathematic problem-solving thinking, actions and logical and
physical processes.
The demonstrating of AI was quite problematic at the beginning. It was Professor Douglas
Carl Engelbart whose university experiences helped to clarify the concept widely among
scientists. As an acknowledged inventor, Prof Engelbart contributed to the development of
computer science with many milestones.
His inventions like the mouse or the hypertext not only helped the work of theoretical
researchers but also gave way to the processes that have eventually resulted in the everyday
49

use of computers. The evolution of computer science was going on parallel with the
development of intelligence research, which resulted in the defining the main characteristics
of intelligence: intentionality, flexibility and productive laziness.

DO YOU KNOW?
Further research had proven that intelligence produces explicit knowledge from implicit
information through deduction process.
Apps in particular, are increasingly important in the way hoteliers
manage the services they provide to their customers and can now
The term ’agent’ – which refers to the personal attributes of intelligence - has become the
control many aspects of the guest cycle and experience.
core expression of contemporary AI research. AI systems today consist of new problem-
solving systems like multi-agent systems (MAS) and distributed agent systems (DAI).
AI research has become an independent scientific field and is applied in several industries.
AI is widely used in various industrial sectors because it can enhance quality and efficiency,
thus improving the speed of different processes1. Regarding future predictions, the
development is foreseen to continue beyond our recent knowledge; therefore, it will be
critical how we can adapt to the new world created by AI.

Research Method
My research focused on the relationship between artificial intelligence and the tourism
industry. During the examination of relevant literature, I have noticed that both the scientific
field and application possibilities of AI are changing. While the early literature on AI
dominantly focuses on the mathematical aspects of AI, the definitions and terms of the field
have been extended in the newer researches lately. The distance and reaction time between
the industry and customers have significantly shortened. In order to gain an in-depth
understanding of ICT used in tourism, I have conducted interviews with tourism experts and
AI researchers.
I have also used the economic data of an innovative tourism business for my research. My
results offer a new approach towards real-life results, which can induce further specialised
research, targeted tourism development and related investments in the field.

The special characteristics of the tourism industry and the development of

ICT
Tourism is a primarily business-to-consumer centred industry, with a target group of
individual consumers. Tourism is based on mobility. The supply and demand sides of the
industry usually meet through internet networks, which requires a great deal of co-operation
and trust. In the past, several providers competed for the consumers and the basic definition
of travel also had a different meaning. Not so long ago, the typical decision-making process
included a visit to the nearest travel agency and choosing from the options offered by the
company.
50

Another typical solution was to choose from mail ordered catalogues. If the consumer
couldn’t find the right option, they would go to another travel agency and compare the
different options.
Today, this process is dramatically shorter: with the use of smart devices, the whole process
of ordering, paying and travelling can be completed within minutes. Because of the
development of ICT systems, the tourism industry has changed dramatically, and its
processes have accelerated. Formerly, successful tourism businesses were based on personal
relations. The online booking systems of airlines not only resulted in better capacity
utilisation, but also in the comparability of prices. The rise of low-cost airlines has further
forced industrial innovation and increased efficiency.
New travel sites like Expedia, Orbitz or Kayak have made the decision-making process much
easier for the consumer; however, the companies that couldn’t keep up with the rapid
evolution of the industry were forced out of the market. Travel packages – including car
rental and airplane tickets – and untraditional travel offers (e.g.: Lonely Planet) are the
opposite of the former business idea of the tourism industry.
As online travel offers have become popular very rapidly, the innovative approach - which
integrates consumers into the development process - became a fundamental value in the
tourism industry. With the appearance of Google, a fierce competition begun among different
blogs, tourism offers sites and price comparing online systems.
The bidirectional communication, where the consumer is an integral part of the business
model (which provides long term information on the preferences of the user), has begun with
the introduction of cookies. The new economic models, based on community service
purchases like the Sharing Economy, are forcing tourism industry stakeholders towards
further innovations.
Accommodation reservation sites like Booking.com operate deeply embedded in social
media; they are able to map their consumers and provide them with tailor made and up-to-
date offers. Despite all objections, community-based services like Uber and Airbnb will
continue to prosper, simply because consumers use them, thus supporting the reform of new
and innovative economic systems.
Tourism businesses also must consider the newest results of robotization, the success of
experimental self-driving cars and innovative transport solutions, VR-glasses and other ICT
developments like tourism-related smartphone applications that appear by the thousand every
day.
The popularity of Facebook Messenger chatbots (which relate to other deep text analysing
systems of Facebook) is growing rapidly among the customer service centres of state-of-the
art airline companies (Alaska Airlines, Lufthansa Group, KLM, Aero Mexico) and travel
agencies. The development of technology cannot be stopped or slowed down; however,
businesses can prepare for and adapt to them with organisational flexibility and openness.
The new generation of consumers will have different demands. The members of the Internet
of People community offer their free time to achieve common goals, where community based
new frameworks are set up for a non-specifiable target group.
51

Similar incentives will make it very difficult for companies that are not ready to serve the
needs of consumers in a flexible way and insist on only selling their own products on the
market in a traditional way.

New ways of influencing Traveller’s decision

Today, AI plays a huge role in creating personalised offers for users. These tailor-made
solutions make travelling more cost effective; ensure that the reservations are made with
regards to personal preferences; offer the favourite foods and drinks and preferred
programmes for the user; in short, they enable the organisation of the perfect trip, based on
the traveller’s demands.
The new decision-making system (including Virtual Personal Assistant – VPN) is also
beneficial for the service providers, because they can align their operation to the existing
capacities. AI knows personal preferences and individual demands much better than travel
DO YOU KNOW?
agencies.
IN the medical world, the TUG robot can carry nearly 1000 lbs of
Travel agents might know more about
medication to anythe market,
location in abut no matter
hospital. howoflong
Because this they’d been
innovation,
working together, theydoctors
cannot able
know to all the more
spend preferences andpatients.
time with motivations of the traveller. In
addition, AI considers positive ideologies like sustainability and climate change awareness,
which at the same time represents a challenge and a huge opportunity for increased efficiency
in the tourism industry.
In today’s fierce competition within the industry, AI offers a huge advantage; however, not
every stakeholder in the tourism industry is ready for its exploitation. While conglomerates
and industrial giants are idly watching the evolution of the future, it is the creativity mindset
of small innovative businesses that make the economy move forward.
In the future, the uniform offers of today’s supply side of the market will be undertaken by
personalised services, provided with the help of AI. Instead of today’s uniformed services,
the tourism industry should focus on individual preferences in the future. For instance, today,
most service providers cannot imagine that during ’happy hours’, they would serve
something their guest prefers instead of what they have on offer.
However, services like that are exactly what the tourists of the future are looking for and
providing them is a huge advance in the competition. The use of AI is not likely to
dramatically change the relationships between the actors and stakeholders of tourism.
The fundamental activities in the industry are likely to remain the same: travellers will make
decisions on the details of their trip and they will arrive to the chosen destination using their
preferred means of travel.

It is clear even today that tourists and local citizens have quite different expectations of the
offer of travel portals – influenced by marketing objectives – and what these sites recommend
as ’must see’ attractions. In the future, these ’must see’ offers can also be personalised and
travel options will be brought to consumers in 3D (with devices like Google Glass), so that
they can choose between offers especially made for them.
52

Formerly, besides the offline influences the online solutions that tried to influence the
consumers’ decisions were following the patterns of user habits in order to enhance their
willingness to purchase. The websites with precisely placed information represented a one-
way communication, which enabled consumers to choose from the given options.
New generation commercial technologies follow and analyse the reactions of consumers via
web cameras. There are stores that use real time, camera-based solutions to follow the flow of
customers within the stores and analyse their decision-making process instead of using the
usual shelf placement techniques.
This way, retail businesses are able to use not only 'external’ marketing strategies, but they
can adapt to their consumers’ habits based on information gained within their own system.
The software’s used in these retail units recognise the gender of the customer and collect data
on what products they are interested in and how they react to the information they read on the
packages of products.

Results
In the technological revolution of the tourism industry, AI-controlled chatbots play an
important role. The first chatbot - called ELIZA - was developed in 1964. Chatbots,
developed for automatized communication, have evolved enormously since the introduction
of the first model; their most popular versions are counselling and personal assistant
applications.
Their main fields of use are retail, customer services, decision making support, stat-of the-art
payment systems and online community building. This case study examines the use of
chatbots within the frameworks of an innovative tourism enterprise. The Marta Resort
tourism project in Hungary2 operates guesthouses and uses a Facebook Messenger type
chatbot since 2017.
They also tried to use drag drop chat software in the past but without any positive response
from the customers. The following data were used for our research: - chatbot usage
timeframe: 20/02/2017 – 20/08/2017 - website visitors during the selected period: 841
downloads - number of chatbot questions: 301.
The operators of the Marta Resort have uploaded 145 questions with their respective answer
options into the chatbot system. The questions and answers contained information on the
guesthouses, travel and transportation options and available programmes in the following
distribution: - 69 chatbot questions about the guest houses - 32 chatbot questions about travel
and transportation - 44 chatbot questions about available programmes.

DO YOU KNOW?
Google has a Quantum AI Lab where, unlike
other companies, they own a Quantum
computer.
53

CHAPTER – 8

AI Applications in the Hospitality Industry: Pros

Try to imagine an AI-enabled hotel where technology is responsible for everything. While it
sounds like something that movie directors should consider for their next project, having such
an establishment is really much closer than you think.

Pro: Answering Guest Questions on Hotel Premises

Germany-based Model One has been using a robot named Sepp to answer practical questions
and providing helpful information for guests. Sepp’s knowledge comes from IBM’s Watson
Conversation Services, which helps it with understanding people’s requests and learning new
information to be more useful.
Sepp Greeting Guests at Motel One. Image Credit: IBM
For example, the robot can let guests know when breakfast is served or give them a quick
update on the weather in town, among other things.
Virginia-based Hilton McLean has also received an upgrade in the form of Connie, an AI-
enabled concierge. This little robot – it’s about two feet tall – also takes advantage of IBM’s
Watson Conversation Services and helps visitors with finding their way around the hotel and
answers other questions.
“It’s trying to see the person as well as hear the person,” USA Today quoted Rob High,
IBM’s Watson vice president and chief technology officer, as saying. “It is itself vocalizing
and it’s using its arm gestures and body language. When it is asked ‘where’s the elevator?’, it
says it’s down the hall to the left while pointing down the hall to the left.”
Connie, Hilton’s AI-powered robot concierge. Credit: Hilton Worldwide
Like all the above-mentioned robots, Connie constantly learns from its interactions with
guests and improves the recommendations it provides. The hotel’s staff also has access to its
question log to be able to make quick improvements.

Pro: Hotel Surveillance

Europe and the U.S. are not the only destinations where AI-enabled robots are starting to
make a difference. Singapore-based Millennium Hotels and Resorts properties have been
using similar technologies since 2017. Six service delivery robots perform such duties as
taking amenities to guest rooms and patrolling the buildings.

According to reports, the company has saved the security team 111 manhours, as human
employees could now watch live footage provided by robots instead of monitoring the
54

facilities themselves. In addition to saving time, the robots also help with handling
unexpected staff absences and high occupancy periods more effectively.

Pro: More Personalized Search Results

But robot concierges aren’t the only area where AI is impacting the hospitality industry. Last
year, a tech company called Avvio launched the world’s first booking engine powered by
machine learning, Allora. By utilizing AI, the tool brings insights from users’ interactions
together and determines the ways to optimize their experience by finding the best hotel or
experience.
By personalizing search results, the engine maximizes the chances of conversion, thus taking
personalization to a whole new level. All of this is possible thanks to the intelligent analysis
of thousands of properties and customer preferences based on geography, booking history,
site interactions, and other factors impacting the choice of a hotel.

Pro: The Ability to Enable Travelers to Research Travel Options with a Chatbot
This one is also about personalization. A recent study done by Booking.com revealed that 75
percent of customers preferred self-service options to get answers for simple requests, which
makes chatbots a perfect option in this case.
Here’s the list of the features and benefits that the company’s chatbot is currently capable of
providing:
Assistance with existing reservations
Answering common questions about property policies
Answering question regarding transport, date changes, arrival and departure times, and
payment.
According to ChatbotGuide.org, Booking’s chatbot is capable of handling about 50 percent of
users’ post-booking accommodation-related requests. In case it can’t provide an appropriate
answer, it redirects the user to a human customer service team member.
The problem of providing multilingual support with chatbots are also solvable by translating
the scripts; for that, the use of translation services review sites like Pick writers, is
recommended to ensure proper localization.
So, in addition to helping customers with managing their experiences and getting answers for
typical requests, the chatbots are also useful for hotels to improve customer service.

AI Applications in the Hospitality Industry: Cons

But will the abovementioned benefits come at a price? There have been quite a few claims
made against the use of AI in many industries, including hospitality, so knowing about them
is certainly useful for companies looking to implement the technology.
55

Con: AI is Still Developing

Even though AI has made tremendous progress in recent years, the field is pretty much in its
infancy. In fact, Andrew Moore, Google’s vice president and an AI leader, has the following
to say on this matter, according to CNet.
“AI is currently very, very stupid… It’s not something we could press to do general-purpose
reasoning involving things like analogies or creative thinking or jumping outside the box.”
There’s even a term for that, “AI Stupidity,” and people use it to describe the inability of the
technology to make reasonable decisions based on the available data. For example, since AI’s
decisions are based on human input, it’s possible to feed it biased or incorrect data, thus
causing irrelevant, biased, or inappropriate decisions.
While this con can be overcome with time as the technology develops, it’s clear that at this
point AI can’t be trusted with making important decisions.

Con: Data Privacy Issues

This is one of the most pressing concerns that all businesses looking to take advantage of AI
will face. Data collected by the technology during interactions with users can be potentially
used for other purposes, therefore, the risk of data privacy violation is involved.
A recent study by Intouch International also shows that customers understand this concern
very well. Specifically, the company discovered that 9 in 10 American Internet users say
they’re concerned about the protection of their personal information online. Moreover, more
than 60 percent of the surveyed are also advocating for stricter national privacy laws.
This means that hotels may face some troubles with getting more customers to use their AI-
based tools. Besides, they’ll also have to obey data privacy laws and ensure the ethical use of
data. However, if they follow all laws and regulations, AI can become a major source of
competitive advantage.

The Verdict
From assisting hotel personnel with answering guests’ questions to providing personalized
recommendations via dedicated search engines, AI definitely has a future in the hospitality
industry. However, in order for the technology to become the new best friend for both
hoteliers and travellers, some significant challenges will have to be resolved.

With more and more countries working on data privacy and other AI-related laws, it’s
reasonable to suggest that the hospitality industry will have to follow a bunch of regulations
to take advantage of the technology. The key to success for hoteliers here will be to show that
it complements the personal side of the hospitality industry and effectively improves the
experience of customers.

If these requirements are met, it’s safe to assume that AI will soon begin changing the way
the hotels are run
56

SURVEY ON ARTIFICIAL INTELLIGENCE

Q1. Have you ever heard about the term Artificial Intelligence?

(a) Yes

(b) Yes, But not so familiar

(c) No
57

Column1

12%

a
b
22% c

66%

Q 2. Have you ever visited to a restaurant equipped with Artificial intelligence ?

(a) Yes

(b) No
58

Column1

10%

a
b

90%

Q 3. Would you ever like to visit a restaurant equipped with Artificial Intelligence?

(a) Yes

(b) No

(c) May be
59

Chart Title
100
90
80
70 64
60
50
40
30 25
20
11
10
0 0 0 0 0 0 0 0 0
0
a b c

Series 1 Series 2 Series 3

Q 4. Have you ever interacted with an artificial intelligence technology robot ?

(a) Yes

(b) No
60

50% 50%

a b

Q 5. Do you know who invented artificial intelligence?

(a) Geoffrey Hilton

(b) Alan Turing

(c) Marvin Minsky

61

(d) Danny Hillis

Chart Title
100

90

80

70

60

50

40

30

20

10

0
a b c d

Q 6. Do you think that Artificial Intelligence is the upcoming future replacing humans?

(a) Yes

(b) No

(c) I don’t know

62

Sales

23%

a
b
46% c

31%

Q 7. Do you think that Artificial intelligence is a threat to human value especially in

hospitality sector?

(a) Yes

(b) No

(c) Maybe
63

Column1

24%
a
b
c
46%

30%

Q 8. Do you think artificial intelligence can replace human skill and emotions that are
required for the hospitality industry?

(a) Yes

(b) No

(c) Maybe
64

Chart Title
100

90

80

70

60

50

40

30

20

10

0
a b c

Series 1 Series 2 Series 3

Q 9. On the scale of 1-5(1 being the lowest and 5 being the highest) how harmful is the
growth of AI in today’s hospitality Industry?

(a) 1
(b) 3
(c) 5
(d) 2
(e) 4
65

Sales

8%
25% a
b
c
d
37% e

14%

16%

Q 10. Do you think that the artificial intelligence is a replacement to everything and if so do
you think that it should be encouraged further?

(a) Yes

(b) No

(c) Maybe
66

Chart Title
100
90
80
70
60
50
40
30
20
10
0
a b c

Series 3

Q 11. What factors do you think are responsible for the growth of AI.?

(a) Fast processing

(b) Productivity
(c) Time saving
(d) Accuracy
67

Sales

22%
26%
a
b
c
d

22%

29%

CONCLUSION

This project will review how artificial intelligence will be beneficial and the
challenges which will come while introducing Artificial Intelligence to Indian
68

hospitality industry. This project will showcase the startups which in started in
India and the invention which will help the Indian hospitality industry. This
project will explain you about what is artificial intelligence and also it will give
you a brief history about artificial intelligence. With the help of this project you
will come to know about the types of artificial intelligence and about the
present technology which we are using. This project also focusses on the
application of artificial intelligence in every sector as well as in hospitality
industry. This project will tell you about the challenges which will be faced
while introducing artificial intelligence to hospitality industry. This project will
inform you about the affect of artificial intelligence to Indian hospitality
industry. And this project will also inform about the pros and cons of the
artificial intelligence to the hospitality industry. And apart from this, this
project will also give you some facts about artificial intelligence.

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69

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