Technology leaders embracing AI in the hospitality sector but digital demand challenges persist

- Research shows nine in ten using AI to transform business operations
- Yet challenges remain, with nearly six in ten citing budget constraints  

London – 5 December 2024 – The UK hospitality industry is making strides in adopting new technology, with nearly nine in ten (89%) technology leaders saying they are using AI in business operations. This is according to new research from global technology transformation specialist, CI&T, which works with brands including Domino’s. Nearly three-quarters of those surveyed (73%) believe they are prepared for automation to improve processes, while 85% place a high importance on adopting AI tools to enhance the customer experience. 

Yet, there is a long way to go to satisfy consumer appetite for digital experiences. Technology leaders cite persistent challenges when it comes to digital transformation initiatives. Primarily, this is related to cyber security and compliance (46%), but legacy systems (38%) and a lack of skilled workforce (37%) are also hampering efforts to optimise the digital experience.

The report, ‘Turning Digital Insights into Action: Elevating QSR, Fast Casual Dining, and Coffee Chains’, which surveyed 111 senior IT and technology decision-makers from the UK’s Quick Service Restaurant, Fast Casual Dining, and Coffee Chain sectors, also found budget constraints are a significant barrier to delivering exceptional customer experiences for nearly six in ten (59%) respondents. So too is a lack of unified customer data (59%), which is making it harder to prove a return on investment from AI initiatives. This issue is a hindrance for more than half (55%) of technology leaders looking to adopt AI to enhance operations and meet consumers’ evolving digital expectations. 

This comes as more than eight in ten (82%) UK consumers view the digital experience as a reflection of the overall quality of a food and beverage brand, according to findings from CI&T’s recent “Digital Dining Era” research into quick service restaurants. Recognising how much is at stake for brands to win consumers over from the competition, the digital customer experience is a top focus for innovation for half of technology leaders (50%), together with payment technology (48%) and menu innovation (46%). 

Christian Buncher, Senior Director of Digital Product and Strategy, CI&T, says: 
“AI is front of mind for the hospitality industry, which is looking to create seamless digital experiences. But technology leaders are being held back – by budget constraints and data management issues, in addition to ongoing challenges like legacy systems and skills shortages – making it harder for the sector to truly reap the benefits of new technologies. 

“Despite this, technology leaders recognise the importance of driving innovation to stay on top of consumers’ evolving expectations. No longer is brand quality just a conversation about the quality of the food. In today’s competitive hospitality landscape, the digital experience is a window into the brand. Factors such as quick payment and menu innovation are fast becoming deal-breakers when it comes to consumers’ decisions on where to dine.” 

Note to editors  
CI&T has experience working with hospitality brands such as Domino’s. In this research, it
surveyed 111 senior IT and technology decision-makers from the UK’s Quick Service Restaurant (QSR), Fast Casual Dining, and Coffee Chain sectors. The respondents, all of whom hold critical roles in shaping their organisations' technology strategies, provided insights into the primary challenges they face in today’s rapidly evolving digital landscape. The research was carried out between October and November 2024. 

Technology
Through this survey, CI&T aimed to identify both the obstacles to digital transformation and the strategic opportunities technology leaders are looking to explore in the coming years, offering a comprehensive view of the current state of technology adoption in these dynamic industries.

About CI&T

CI&T (NYSE:CINT) is a global technology transformation specialist for 100+ large enterprises and fast growth clients. CI&T brings a 30-year track record of helping clients navigate change to deliver accelerated business impact, with deep expertise across AI, strategy, customer experience, software development, cloud services, data and more. CI&T’s proprietary AI platform, CI&T FLOW boosts team productivity, ensuring fast, efficient, and scalable delivery of world-class solutions. Operating globally with over 6,500 professionals across 10 countries, CI&T is recognised by Forrester as a Leader in Modern Application Development Services.

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