The Change
Google has announced that its Gemini AI will soon gain agentic capabilities, enabling it to perform multi-step tasks on smartphones, such as ordering food or hailing rides. This functionality is set to debut on upcoming Google Pixel and Samsung Galaxy devices. While similar features were previewed by Apple for Siri, their release has been delayed. The Gemini agentic features are expected to be available on select new Android phones starting in the near future, with wider adoption anticipated as new devices are released and updated.
This development signifies a move towards AI assistants that can proactively manage user requests, reducing the need for direct human interaction for routine transactions. For businesses, this means potential new avenues for customer engagement, but also the need to ensure their systems can interface with these AI agents.
Who's Affected
- Small Business Operators: Restaurants, cafes, retail shops, and service providers will need to consider how AI agents might handle customer orders, bookings, and inquiries. Current reliance on direct phone calls or simple online forms may become less effective if customers expect AI-driven conversational interfaces to manage their needs.
- Tourism Operators: Hotels, tour companies, and vacation rental agencies may see AI assistants begin to manage booking modifications, service requests (like room service or tour bookings), and initial inquiries. This could streamline some processes but also requires integration with booking systems and a clear communication strategy for AI-generated requests.
Second-Order Effects
- Shifting Customer Interaction Channels: Increased reliance on AI agents for ordering and booking, potentially bypassing traditional phone lines or online forms. This could lead to reduced direct customer contact for small businesses, impacting opportunities for upselling or personalized service.
- Demand for AI-Interoperable Systems: Businesses may face pressure to integrate their point-of-sale (POS) and booking systems with common AI platforms, leading to new technology adoption costs and potential vendor lock-in.
- Visitor Experience Expectations: Tourists equipped with advanced AI assistants may expect seamless, automated service interactions, potentially favoring businesses that facilitate AI-driven bookings and requests, thereby influencing tourism operator competitiveness.
- Labor Market Adjustments: As AI handles more routine transactional tasks, demand may shift towards roles requiring human empathy, complex problem-solving, and personalized guest experiences, particularly in Hawaii's service-oriented economy.



