Wednesday, June 18, 2025
In 2024, during the Business Travel Show Europe, key executives from the business travel sector expressed their optimism about the role artificial intelligence (AI) could play in enhancing traveler experiences, boosting efficiency, and increasing overall productivity. The rapid advancements in AI over the past year have sparked significant changes in how the travel industry operates, creating a shift that promises to redefine the future of business travel.
The European Union’s Groundbreaking AI Legislation
One of the most impactful developments in 2024 was the introduction of the European Union’s AI Act, the first comprehensive regulatory framework for artificial intelligence globally. The act, which became law in 2024, established guidelines for AI use based on varying risk levels. Notably, it bans harmful practices such as the manipulation of vulnerable groups, social scoring, and the use of biometric identification and facial recognition. This landmark legislation is expected to influence how AI tools are adopted across industries worldwide, with significant implications for the business travel sector that increasingly relies on AI technologies for operations and customer services.
AI Innovations in the Travel Technology Space
Over the past year, numerous AI-powered tools and models have been introduced, each contributing to the transformation of corporate travel management. OpenAI’s GPT-4.1 and Google’s Gemini 2.5 are leading the way, enhancing the efficiency of travel programs and streamlining day-to-day operations. A particularly noteworthy development was the release of DeepSeek, an AI model from China, which proved that it’s possible to create cost-effective models that do not rely on the computing power of Nvidia GPUs. This breakthrough challenges existing AI frameworks and opens the door for more accessible and scalable solutions in the business travel space.
AI’s Role in Corporate Travel Optimization
A Serko/Sabre survey conducted earlier in 2024 revealed that 44% of corporate travel managers foresee AI having a significant impact on their travel programs over the next five years. An additional 22% believe that AI will be transformative, completely reshaping the landscape of business travel. AI’s influence is already visible through various platforms.
For example, in July 2024, Altour launched an AI-driven suite of tools designed to assist with booking, travel disruption management, and the introduction of a natural language interface for travel managers. This is part of a growing trend where companies are using AI to optimize corporate travel processes. Similarly, Amex GBT, which introduced its AI initiative early in 2024, has enhanced its Egencia platform with AI features, such as a virtual agent and a natural language query system for data analysis. These new features are expected to fully launch by 2026, allowing managers to retrieve important program data by simply posing questions in plain language.
In May 2024, HRS unveiled its AI-powered Copilot platform, which combines Anthropic’s large language model (LLM) with HRS Labs’ own specialized AI tools. The platform aims to help travel and procurement managers optimize hotel programs more effectively by providing insights and recommendations based on real-time data.
Optimizing Travel Programs Beyond Cost
While much attention has focused on the booking experience, experts like Martin Biermann from HRS argue that AI’s true potential lies in the optimization of the entire travel program. As the travel industry evolves, it’s no longer sufficient to simply save costs; today’s programs must prioritize sustainability, satisfaction, and safety—elements that can be significantly enhanced with AI. By continuously refining travel programs, AI enables companies to align their offerings with the specific needs of travelers, increasing adoption rates and improving overall program success.
AI is also helping businesses analyze data such as spending patterns, loyalty trends, and employee profiles, allowing for more tailored and effective programs. By incorporating data about markets, supplier structures, and traveling personas, AI helps balance cost savings, rate accuracy, supplier compliance, and sustainability goals.
Data Privacy and Security Concerns
Despite the many advantages AI brings to the travel industry, concerns over data privacy and security remain a major hurdle for adoption. According to Biermann, HRS ensures that its AI tools operate within its own cloud infrastructure, ensuring that all client data remains private and secure. This transparency gives businesses the ability to monitor AI actions, review decision logs, and understand which recommendations have been implemented.
Another challenge is securing IT approval for AI-powered travel solutions. Keesup Choe, CEO of PredictX, notes that getting IT clearance for AI tools has become more complicated, as businesses are increasingly cautious about implementing new technologies. Sophie Taylor, CTO of Gray Dawes Group, points out that while many companies are excited about AI, few have a clear vision of how it will practically integrate into their travel management systems.
The Divide Between Developers and Users
One of the key obstacles to faster adoption is the knowledge gap between AI developers and corporate travel managers. Both sides are still working to understand how AI can be applied effectively in real-world situations. Moreover, many corporate security teams are hesitant to embrace AI due to concerns over accuracy, particularly the risk of “hallucinated” answers—incorrect or misleading information generated by AI models. Even small inaccuracies in travel bookings or recommendations could have serious consequences for companies that depend on precise data for budgeting and travel safety.
Despite these challenges, Choe remains hopeful about AI’s future in business travel. He points to emerging technologies like diffusion models, which could enhance the creation of visual content, potentially revolutionizing the way travel companies manage branding, marketing, and customer engagement in the near future.
The Long-Term Role of TMCs in an AI-Driven World
While AI is undoubtedly shaping the future of travel management, Travel Management Companies (TMCs) are not expected to vanish anytime soon. According to Taylor from Gray Dawes Group, AI will transform many aspects of corporate travel, but TMCs will continue to play a crucial role, especially in crisis management. When unexpected disruptions occur—such as flight cancellations, natural disasters, or pandemics—TMCs will remain indispensable. These situations demand human intervention, where expertise and problem-solving skills far exceed the capabilities of any AI system.
In conclusion, while AI will undoubtedly transform how business travel is managed, TMCs will evolve to incorporate these new tools, but they will continue to serve as a vital safety net during moments of unforeseen challenges. AI’s rise in business travel is inevitable, but human touchpoints will still be essential in navigating the complexities of the industry.
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