AI Concerns for the Hospitality Industry

This article is based on research including experimenting with a few AI programs myself. The information here is to encourage personal research on the subject. I am not an expert in this area, just an author. The information here is presented to create awareness and provide a few tips.

With the advancements of AI, there have been several documented cases around the world of individuals who have suffered an illness and even harmed themselves or others because of their interactions with AI. Recently, my wife Emily pointed out a television show episode where a woman was suffering from “AI-induced psychosis” and suggested that I publish something about it to our industry. So here we go…

Those of us in the hospitality industry know that the digital landscape is changing at an astonishing pace. AI handles tasks as varied as booking hotel rooms, fielding customer inquiries, and even offering personalized suggestions. This technological leap undoubtedly brings new efficiencies, but it also introduces risks that rarely make the headlines. Among these is “AI psychosis,” a term used by mental health professionals to describe situations in which close, repeated interactions with human-like AI can worsen or even trigger delusional thinking.

Given how quickly hotels, restaurants, and travel companies are adopting AI-powered tools, it’s more important than ever to understand what AI psychosis is, why it matters, and how the hospitality sector can address its potential side effects.

Understanding AI Psychosis

Although you won’t find “AI psychosis” listed as an official medical diagnosis, the concept has started gaining attention as technology becomes more conversational and accessible. The core idea is straightforward: some people develop or see a worsening of psychotic symptoms—delusions or paranoia—during or after their interactions with AI chatbots. Teenagers and young adults who are still finding their way in the world are pretty susceptible to problems associated with this health problem.

Chatbots Increase the Problem

Popular chatbot platforms, including those modeled after real people or designed to imitate human conversation, are built to be supportive, friendly, and engaging. Often, they mirror the language and preferences of the user—perfect for creating a pleasant digital experience, but problematic for someone grappling with reality. I recently tried one that was supposed to be my twin. It was both fascinating and scary. After spending about 30 minutes to “teach” it things about me via a questionnaire, it very quickly learned personality traits. After “chatting” with the program for about an hour, I moved on to another hobby. The scary part is that the next day, messages came in that were very specific, not only to my personality traits but also suggesting interpersonal relationships and also some issues that we had not even chatted about.

The result is that these AI tools may unintentionally “agree” with false or harmful beliefs. For instance, if someone prone to paranoia starts to believe a chatbot shares their fears, or if a lonely individual mistakes software for romantic interest, a feedback loop forms that can deepen existing delusions. A platform like the one that was supposed to be my twin, which is specifically engineered to mimic human interaction down to the smallest detail, could make it even harder for users to spot the boundary between what’s real and what’s generated.

Where Hospitality and AI Psychosis Intersect

Our industry revolves around creating positive, responsive experiences. It’s not a surprise that many members of our industry are turning to AI-powered assistants, digital concierges, and chat-based booking agents. While these tools help streamline operations, train our employees, and do many other positive things for the industry, there is a need to consider their impact—especially as they become more human-like.

How Employees Might Be Impacted

Staff in our industry operate in high-pressure environments and sometimes turn to digital tools for training, HR support, or dispute resolution practice. The next wave of employee-facing chatbots, which can simulate customers or workplace scenarios, is supposed to make life easier. Yet, if a staff member spends hours interacting with these “perfect colleagues,” especially while under stress, high school and college problems or experiencing burnout, the line between constructive practice and unhealthy reliance can blur.

Potential problems include:

• Social Withdrawal: Choosing AI chatbots over real colleagues for interaction, eventually leading to isolation.
• Reinforcement of Bad Habits: An employee might vent frustrations to a bot that, unlike a human supervisor, never disagrees, nudging them further from professional standards.
• Worsening of Mental Health: Excessive reliance on non-human interaction might deepen existing psychological challenges, including the risk of psychotic symptoms in those vulnerable.

Recommendations for Safe and Responsible Use

The point here isn’t to fear or shun AI in hospitality—far from it. These tools can be managed safely and ethically with thoughtful planning:

• Make It Clear Who’s Who: Chatbots and virtual assistants should always identify themselves as non-human, so users are never confused. Personally, I always ask first thing, are you real or are you AI, because many don’t say this up front.
• Use Safeguards: AI systems should be equipped to recognize words or patterns that might signal distress. For example, employee satisfaction surveys, training programs that allow open-ended questions, and customer satisfaction surveys evaluating your staff.
• Don’t Overdo the Agreeableness: Developers can design chatbots to offer gentle pushbacks or clarification, rather than mindlessly agreeing with every statement. If you are pursuing any type of employee interaction software, add these to your requirements.
• Keep Human Connection at the Core: The heart of hospitality is human warmth. Ensure that customers and staff can always reach a real person easily and quickly.
• Give Staff Education: Educate employees about how AI works, what it can and can’t do, and the pitfalls of over-reliance. Awareness makes a difference.
• Set Limits: If possible, build reminders or usage caps into internal tools, prompting users to take regular breaks and seek out real colleague interaction.

Frank Wolfe ([email protected]) is Chief Executive Officer (CEO) of Hospitality Financial and Technology Professionals.

This article originally appeared on HFTP.