There are raised expectations for AI’s potential which are unmatched by its widespread adoption. The democratization of AI will allow everyone to develop and execute new ideas. This report explores the transformative potential and applications of AI, including generative AI, for the tourism industry.
How Generative AI is transforming the tourism industry
How Generative AI is transforming the tourism industry?
ChatGPT, OpenAI’s text-generating ChatGPT has captured the world’s imagination since its launch in November 2022, significantly raising the bar for expectations of generative AI’s capabilities. It is already woven into the fabric of our daily lives, to the extent that it’s rare for a day to pass without encountering some mention of it in the media and other channels. ChatGPT counted an estimated 100 million monthly active users within two months of its launch—a significant milestone. For comparison, it was about nine months before TikTok hit the same number of users after its global launch, while LINE took over 19 months.
Although there are raised expectations for AI’s potential, its use is not yet widespread. However, it is becoming increasingly democratized because of its relative simplicity and accessibility as an open-source technology. It is open to all particularly with the arrival of generative AI, including ChatGPT.
In this report, we will explore the transformative potential and possible applications of AI, including generative AI, in the tourism industry.
AI market size
What is the market size of AI and its impact on global markets? Various sources propose data on the market size of the AI industry. According to data from Statista, the worldwide market is forecast to exceed USD1.84 trillion (approximately JPY276 trillion)1 by 2030, with a compound annual growth rate (CAGR) of 35.5% for the period from 2024 to 2030. Reports also indicate that applying generative AI across all industries could have an economic impact of USD 2.6 to 4.4 trillion2, which represents an economic boost of 15 to 40%. It could potentially raise global GDP by 7% (approximately USD7 trillion) over the next decade and enhance productivity by 1.5%.3
The rise of generative AI has further expanded the range of AI applications and is expected to exert a significant influence on the global economy.
