Travel, Tourism & Hospitality
Five AI-driven travel and expense trends expected in 2025
SAP Concur research shows 95 per cent of business travellers and 64 per cent of travel managers are open to AI-driven automation for tasks like visa support, expense tracking, and sustainable travel options.
Artificial intelligence (AI) is getting smarter every second, and in the coming year, it promises to revolutionise the tools that travellers and travel managers use daily.
According to SAP Concur research, 95% of business travellers are open to embracing AI-driven automation for tasks such as visa and documentation support, expense tracking and reporting, and identifying sustainable travel options.
Meanwhile, 64% of travel managers worldwide express a desire to see AI automate at least part of their responsibilities.
As AI continues to impact, streamline, and enhance business travel in 2025, João Carvalho, Managing Director of SAP Concur in Southern Europe, Middle East, and Africa, predicts five key trends in travel and expense (T&E) management:
GREATER INVESTMENT IN DIGITAL SYSTEMS AND SECURITY
While AI streamlines T&E processes, it also increases exposure to cyber threats, heightening the risk of sensitive business and customer data breaches. With the average cost of data breaches climbing each year, safeguarding personal and financial information has become a top priority.
Striking a balance between innovation and security will define 2025. Organisations will invest in advanced tech solutions alongside strengthened security protocols, enabling them to enhance processes while minimising risks. This dual approach is essential to maintaining trust and thriving in an increasingly digital world.
HEIGHTENED BUDGET PRESSURES AND COMPLIANCE DEMANDS
With inflation slowing, businesses are cautiously exploring ways to maximise travel investments. In 2025, financial controllers will face growing pressure to optimise T&E budgets without jeopardising the organisation’s financial stability.
Compliance and visibility will take centre stage. More businesses will adopt unified platforms to manage T&E, ensuring consistent application of policies as travel activity increases. These systems will protect against costly mistakes, fraud, and policy violations, delivering greater value for every travel spend.
EXPENSE REPORTS EVOLVE INTO EXCEPTION REPORTS
AI is revolutionising expense management, making processes faster and more accurate. Business travel managers can cut research and cost-estimation time by up to 83% and automatically itemise expenses after trips, ensuring compliance while reducing approval and reimbursement delays.
In 2025, AI will further refine this process by replacing traditional expense reports with exception reports. These reports flag only deviations from T&E policies, enabling travel managers to conduct precise audits, detect fraud, and eliminate errors with ease.
A COLLABORATIVE APPROACH TO AI ADOPTION
AI’s role in corporate travel is shifting from novelty to necessity. In 2025, its integration will focus on enhancing efficiency and personalisation while preserving the human touch.
Capabilities such as pre-trip cost predictions and policy-aware itinerary recommendations will become standard, helping organisations optimise expenses and compliance. Business travellers and managers will explore AI’s broader potential to streamline workflows, improve forecasting, and navigate disruptions with agility.
This thoughtful adoption underscores AI’s position as a strategic ally rather than a replacement for human oversight.
GROWING DEMAND FOR SUPERIOR USER EXPERIENCES
As business travel rebounds, expectations for seamless traveller experiences are rising. Advanced technology is driving demand for real-time updates on disruptions, cancellations, and safety concerns.
AI-powered T&E systems are stepping up to meet these needs, offering improved duty-of-care solutions and enabling organisations to support employees in unpredictable travel scenarios.
“After years of buzz around AI, 2025 marks a shift towards practical implementation. Companies must find the right balance between innovation, security, and cost efficiency to stay competitive in the evolving T&E landscape. Perfecting this equilibrium will be the cornerstone of success in the year ahead,” Carvalho concludes. -TradeArabia News Service