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AI and workforce scarcity are shaping hospitality talent issues, says HSMAI report
AI and workforce scarcity are shaping hospitality talent issues, says HSMAI report10th November 2025 | published by Paul Colston SHARE

The talent war is intensifying. HSMAI's latest report reveals AI adoption and workforce scarcity as critical challenges reshaping hospitality careers. Organizations placing people-first strategies at their core will define the industry's next 50 years. Success demands immediate action on upskilling and leadership.
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The Hospitality Sales & Marketing Association International (HSMAI) Foundation has outlined artificial intelligence adoption, demographic shifts, and post-pandemic workplace evolution as top trends impacting talent across hospitality. The conclusions come from its fourth annual State of Talent Report.

At the heart of this year’s report is a clear message: the next five years in AI and talent strategy will define the next 50 for the industry. AI’s dual role as both a catalyst for creativity and a disruptive force is altering job structures, career pathways, and organisational priorities at an unprecedented pace.

Simultaneously, the report warns of a shrinking employment base and intensifying competition for skilled professionals. In this environment, the authors say, talent itself becomes the ultimate differentiator, and organisations that place people at the centre of decision-making will lead the industry forward.

“AI has moved from a future consideration to a current imperative,” said Brian Hicks, president and CEO of HSMAI. “Its speed, scale, and potential are unlike anything hospitality has seen since computerisation. The organisations that act decisively to integrate AI into their commercial strategies, while investing equally in upskilling and leadership, will be the ones that define the next era of hospitality.”

The State of Talent Report identifies and ranks these nine trends shaping the industry’s workforce priorities:

The rise of Artificial Intelligence Retention through upskilling, reskilling and upward mobility Meeting the needs of multigenerational workforces Leadership defines culture and organisational purpose Prioritising emotional wellness Return to office and hybrid work models The rise of the gig economy and fractional staffing models Transforming employee engagement Cross-functional teamwork and the evolution of commercial

The report offers deeper insights into each of these trends through reviews, interviews with industry professionals, and case studies and the findings emphasise that winning organisations will be those that place talent strategy at the core of their business models, making deliberate decisions about what to insource, what to outsource, and how to build an environment that anchors growth, profitability, and long-term competitiveness.

“The commercial success of the hospitality industry depends on its ability to align people strategy with revenue growth strategy,” said Lori Kiel, chair of the HSMAI Foundation and senior vice-president of revenue management at Pyramid Global Hospitality. “AI, demographic change, and workforce expectations are rewriting the playbook – and the organisations that invest now in talent excellence will shape the industry’s next chapter.”

The State of Talent Report is authored by Dorothy Dowling, MD Horwath HTL, and a special advisor to the HSMAI Foundation Board. The full report is available HERE. For more information about the HSMAI Foundation and its programmes, visit www.hsmaifoundation.org.

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