AI has gone a long way from science fiction and theories to implementations in many areas of everyday life. Such an illustrious evolution has become possible thanks to the efforts of both scientists and software engineers. However, the development of Artificial Intelligence and Machine Learning does not stop. AI technologies are gradually making their way to new areas of interest and finding new implementations in already established fields. Let’s see how AI and ML interact with their “hearth and home” - the field of software engineering.
Definition of AI and Its Various Applications in Software Development
Artificial Intelligence is one of the oldest concepts, originating from ancient times and myths. However, it was not until the 20th century when old ideas and crude prototypes got practical realization. Many prominent mathematicians, logicians, and computer scientists joined their efforts to define the concepts of “reasoning” and “learning” in the context of computers. The works of Alan Turing, Arthur Samuel, Tom M. Mitchell, and many others created the base for the progress of AI and ML technologies and computer algorithms and programming languages in general.
The generally recognized features that define AI are the ability to solve complex problems and the ability to generate information based on the source parameters. This way, researchers focus on the similarities between “human” thinking and “machine” thinking. Artificial Intelligence also should have the ability to learn, with human supervision or without it.
Thanks to the rapid progress of AI and ML technologies, they have been successfully integrated into many key areas of modern life. For example, the bond between AI and software development turned into two-way beneficial cooperation. This means that Artificial Intelligence has two major layers of interaction with software engineering.
It is an immensely useful tool that helps developers with numerous tasks. An AI paired with great computational power and data storage capabilities easily outperforms human abilities.
It is an object of software developers’ labor. Software engineers are often tasked to create an AI for specific purposes or to integrate an existing AI into a solution that is being developed.
Let’s take a look at both of these areas of interaction.
The Applications of Artificial Intelligence in Software Engineering
Software developers have mastered the art of training and customizing AI for various purposes. In general, state-of-the-art AI has unparalleled abilities for data mining, analysis, and classification. Those abilities also make Artificial Intelligence a great assistant capable of understanding requests and finding solutions. Here are a few examples of using AI technologies in software development:
Code Generation
Modern AI can write code based on given parameters. The results, on average, are quite satisfactory but not enough to replace a skilled programmer. However, specialized AIs and learning models are getting progressively better. It is just a matter of time until they become on par with junior-level specialists. This pace of progress should be a clear signal for software engineers to keep improving their skills.
The machine-written code still requires comprehensive checking from experienced specialists, especially regarding its security. In the near future, this tendency may change the role of software developers. It is possible that AI will perform the “writing”, and developers will switch to “editing” the code. This way, Artificial Intelligence will do the bulk of hard and mundane work, and software engineers will oversee this process.
Requirements Gathering
Developers often use Artificial Intelligence to compile a set of requirements for a future software product. It optimizes workflow and reduces the flow of documents associated with this task. AI proves to be extremely useful in demanding projects with complex requirements.
For example, Watson AI, developed by IBM, is especially useful for requirements management. In addition, it effectively assists in other stages of the software development life cycle. The use of AI eliminates or at least reduces the need for going through lots of paper and digital documentation manually.
Planning, Estimating, and Designing
Based on the gathered requirements, AI can take over the rest of the software development process. It is more efficient in tasks that require calculations, such as estimating costs and scheduling deadlines. It also can determine the development team setup and the number of required specialists to meet the deadlines within the set budget.
Of course, this process is closely supervised by managers. So, the role of AI here is to make rough drafts rather than final plans. It can also make suggestions regarding workflow optimization. However, humans still have the final word regarding AI advice.
Quality Control and Feedback Management
Artificial Intelligence can also assist developers by running error scans and looking for vulnerabilities in code. Software engineers can train AI using the existing guidelines and checklists for ensuring software security. Then, any particular development company can customize and enhance obtained machine learning models individually. The specialists can turn those models into intellectual property by training them on every software product created by that company.
AI is also invaluable for gathering feedback from users and testers in a convenient automated form. It can analyze reports and divide them into categories depending on the nature of feedback (positive/negative), the severity of a reported error (critical/major/minor), and other parameters. The resulting structured data will be much more useful for the purposes of QA than the bulk of assorted reports.
Areas and Industries That Use AI-powered Solutions
As was described above with reference to software development, specialists use AI for two general purposes. One purpose involves Artificial Intelligence performing tasks automatically with or without human supervision. The other purpose is to improve the productivity of human workers by assisting them and enhancing their abilities. Below are a few illustrative implementations of AI in different areas outside software development.
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Data mining. One of the main purposes of AI nowadays is to gather enormous amounts of raw data on the Internet. It is the task of web crawlers that are used in search engines, including Google, Bing, Baidu, and others. However, those and other interested companies, such as Meta, Twitter, Amazon, etc., are also collecting information about their users. Every user’s activity on the Internet is usually tracked by several companies simultaneously. The resulting data flow would be impossible without the help of Artificial Intelligence.
Data analysis, classification, and statistics. AI is also responsible for analyzing user data mainly for the benefit of Internet corporations. It defines behavior patterns, habits, and preferences for every user account. The resulting data is used for targeted advertising and other types of personalized content. The latter is especially true in the case of social networks and streaming services.
AI assistants in smart devices. Artificial Intelligence is often integrated into gadgets to make them more convenient and resourceful. The most common types are, of course, smartphones, tablets, and speakers. This is because they have the necessary hardware to listen to users and respond, preferably using AI-generated voice.
Autonomous driving. Artificial Intelligence enables AI-assisted driving in the form of an autopilot that can be toggled on and off. It also allows fully autonomous driverless operation of vehicles in certain environments.
Gaming. One of the earliest showcases of AI was in the form of chess computers. Specialized versions of AI are also used for such table games as go, backgammon, and poker. Artificial Intelligence is widely used in the video game industry, both in single-player and multiplayer games. It controls enemies, NPCs, and bots in order to react to players’ actions.
Writing and maintaining a dialogue. ChatGPT and its analogs are the hottest topics in all the tech news these days. They can hold written conversations with users and are often tasked to write letters, articles, and even scientific papers.
Creating visual art. The combination of AI and ML gave several amazing tools for visual artists and designers. Midjourney, DALL-E 2, and Neural filters in Adobe Photoshop are the most popular examples of such instruments.
The Benefits of Artificial Intelligence for Developers
From the description above, it is clear that Artificial Intelligence and Machine Learning offer many advantages. Most of them can be effectively applied to benefit software development. Here are a few ways how AI improves the work of software engineers:
Precise planning
Predictable workflow
Informed decision-making
Accurate estimates
Better security and QA
Reduced workload
Overall, the main benefits of AI and ML in software development come down to higher efficiency and lower costs. Artificial Intelligence helps to automate many time-consuming processes. This allows managers to switch specialists from boring routine tasks to more creative and responsible assignments.
Additionally, these benefits offered by AI allow engineers to tackle more complex tasks that would otherwise be unfeasible or extremely costly. Ultimately, Artificial Intelligence enables the creation of more enhanced versions of itself. And those better versions will be able to solve even more difficult tasks, thus increasing the benefits.
Challenges of Using AI in Software Development
Higher demands for specialists’ skills. AI is a sophisticated tool capable of performing many tasks. However, to fully utilize its potential, it must be operated by a specialist with sufficient skills and experience. The main requirement is the ability to formulate all the input parameters with maximum precision. In other words, users must say exactly what they want to achieve and describe it in full detail.
Advanced tools require large computational power, storage space, and energy supply. A software development company that heavily relies on AI technologies has to invest in top-tier hardware. Better equipment usually means that AI would perform its tasks faster. In its turn, this would speed up the work of the development team and reduce the time to release the final product.
Extra licensing costs. Professional tools are not cheap, especially in the software development business. Most state-of-the-art AI and ML solutions involve a hefty price for their commercial use. However, the costs are reasonable and more than justified. AI-enhanced tools quickly pay for themselves, especially when they are used by skilled software engineers.
The Future of AI in Software Development
It is safe to admit that AI technologies are the present and future of mankind. They have been successfully integrated into both personal and professional aspects of our lives. This means more work for software developers who create and implement custom AIs.
The combination of Artificial Intelligence, software engineering and Machine Learning is growing more powerful as the technologies improve every day. Moreover, software developers can now use specialized AIs to create other AIs. The circle has come to a close. But it also created the foundation of the constant evolution of Artificial Intelligence, allowing engineers to create better versions of AI with improved abilities.
Though the use of AI simplifies the work of software developers, it also demands high levels of skill and knowledge. This is especially true when engineers need to integrate Artificial Intelligence into custom software solutions. Our team in Intellectsoft has enough know-how and experience to handle complex and challenging AI-related cases. We offer a range of AI development services for various industries. Contact us to bring the advantages of Artificial Intelligence to your software.
The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor Customer Service
Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.
Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).
When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!
How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.
Examples of Intellectsoft projects
Property management systems (PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.
Existing Customers First: Building Loyalty with Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.
Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.
More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.
Source: Deloitte
How does technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.
Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."
Leveraging Software to Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.
Upselling via Apps
Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource Management Software
Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.
3. Equip Your Team
Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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