African, Middle Eastern hotels lead global AI adoption despite data infrastructure challenges

AFRICA/MIDDLE EAST – Hotel chains in Africa and the Middle East have demonstrated world-leading adoption and integration of artificial intelligence (AI), according to a new global study by h2c, commissioned by hotel technology provider Profitroom.

The research shows that while African hospitality businesses embrace AI at unprecedented rates, most face data infrastructure limitations that hinder maximising AI’s full potential.

The study found that 57% of Middle East and African (MEA) hotel businesses have integrated AI-driven features in their products and services.

This significantly outpaces Europe (30%), the Americas (30%), and Asia-Pacific (29%), and is well above the global average of 35%.

MEA hotels also allocate dedicated AI budgets at higher rates than other regions, showing strong financial commitment to AI innovation.

Their trust in AI is rated 7.1 out of 10, tied with Asia Pacific. Comfort with AI-driven pricing scores 7.2/10, exceeding the Americas’ 6.2/10, while only 35% worry about AI harming guest experience versus the global 50%.

However, data silos remain a critical barrier, with 47% of MEA hotels reporting departmental data fragmentation limits AI adoption, highest worldwide.

Despite top AI expectations, 94% demand real-time predictive analytics, only 8% of hotel chains globally have company-wide AI strategies.

Key challenges remain, including lack of AI expertise (62%), poor AI ROI tracking (42%), and concerns over AI bias (58%).

Major AI investments by hotel chains in the Middle East and Africa are significantly shaping the hospitality landscape, as highlighted by recent studies and industry reports.

Leading hotel groups are allocating substantial budgets to AI-driven initiatives such as dynamic pricing, guest personalization, and operational automation to enhance efficiencies and customer satisfaction.

For instance, Radisson Hotel Group’s AI-powered “Meetings Unbound” initiative uses artificial intelligence to create immersive event experiences, demonstrating tangible benefits from tech integration.

In addition, startups catering to AI data integration, energy optimization, and AI-driven staff training have attracted growing investor interest in the region.

The Middle East, particularly hubs like Dubai and Riyadh, is rapidly becoming a global AI innovation center, supported by government-backed AI strategies and robust tech ecosystems.

Despite the high enthusiasm, data silos remain a challenge limiting cohesive AI adoption.

However, with projected rapid growth in digital marketing automation (59% expect full automation by 2030), hotel chains are making notable strides in embedding AI into their long-term operational strategies, positioning MEA as a global leader in AI-powered hospitality.

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