What's Happening?
Adam Harris, CEO of Cloudbeds, has raised concerns at the Skift Data + AI Summit 2026 about the current AI procurement decisions being made by hotel CEOs. He argues that many AI capabilities being adopted are probabilistic, meaning they answer questions
and produce impressive demos but are not suited for large-scale operations. Harris suggests that deterministic AI, which takes action with certainty, is necessary for effective hotel management. He warns that the AI tools and architectures being committed to in 2026 may become obsolete by 2029, likening them to fax machines—functional but outdated and costly to replace.
Why It's Important?
Harris's warning highlights a critical issue in the hospitality industry: the risk of investing in AI technologies that may not meet future operational needs. As hotels increasingly rely on AI for pricing, inventory, and customer interactions, the choice between probabilistic and deterministic AI becomes crucial. The potential obsolescence of current AI systems could lead to significant financial implications for hotels, as they may need to invest in new technologies sooner than anticipated. This situation underscores the importance of strategic planning and careful evaluation of AI solutions to ensure long-term viability and competitiveness.
What's Next?
As the industry digests Harris's insights, hotel CEOs may need to reassess their AI strategies and procurement decisions. This could involve seeking more robust, deterministic AI solutions that can adapt to future demands. The conversation around AI in hospitality is likely to evolve, with increased scrutiny on the architectural soundness of AI platforms. Industry stakeholders may also push for clearer guidelines and standards to help differentiate between probabilistic and deterministic AI offerings, ensuring that investments align with long-term operational goals.
