Why the Future of AI in Travel Might Belong to the Small and Nimble

Artificial Intelligence (AI) is no longer a buzzword, but a real force that’s rewriting the rules of how countries compete, innovate, and grow within the tourism sector. While headlines often focus on the ambitions of tech superpowers like the U.S., China, or the EU, a quieter revolution is unfolding. Small countries, nations with limited populations, budgets, and geopolitical clout, are finding surprising advantages in the AI age. At the World Travel Market Ministers’ Summit, this was a big topic.

“By the words of Sultan M Almusallam: AI is cross-cutting. It gets into trade, it gets into culture, entertainment, and many other sectors. Tourism, as a matter of fact, is also cross-cutting.”

Nowhere is this more visible than in tourism, a sector where experiences matter, personalisation is king, and technology can make or break a destination’s appeal. As Natalia Bayona, the Executive Director of UN Tourism noted: And because of their size, they can move faster, test bolder ideas, and scale innovations more effectively than their larger peers.

This isn’t a story of catching up. It’s a story of leaping ahead.

The Agile Advantage: Why Size Matters in the AI Race

Imagine trying to turn a cruise ship versus a kayak. That’s the essential difference between large and small countries when it comes to implementing AI. Small nations are like nimble kayaks—they can pivot quickly, change direction, and embrace change without battling entrenched bureaucracy.

Take Estonia, a country of just over a million people. In less than a decade, it’s become a global model for digital governance. Its e-residency program and national digital identity system are underpinned by AI and automation. Crucially, Estonia didn’t just implement new technology—it rewrote its regulatory framework to support innovation, cybersecurity, and entrepreneurship.

This regulatory agility is an overlooked superpower. Where larger countries spend years debating policy, smaller nations can prototype and implement in months. At the 2024 World Travel Market Minister’s Summit, several tourism ministers emphasized how this flexibility allows them to attract investment, support startups, and leapfrog into digital leadership.

For nations looking to modernise tourism, this means rolling out AI-based visitor services, predictive resource management, and smart marketing without the usual political delays. Being small, in this context, is not a limitation—it’s a launchpad.

Uzbekistan, for example, has invested in AI research labs and digital infrastructure to transform how it markets and manages tourism. Visitors receive real-time, personalised travel suggestions via AI-powered apps. National campaigns use machine learning to identify high-potential markets and customize messaging. These aren’t isolated gimmicks—they’re part of a broader strategy to embed digital capability into the economy. In doing so, Uzbekistan isn’t just improving tourism—it’s creating new jobs, training its workforce in tech, and diversifying its economy beyond raw materials and traditional sectors. When AI becomes an integrated national strategy, not just a set of tools, small countries can unlock long-term, resilient growth.

Empowering Communities, Not Just Systems

Building Sustainable, Smart Tourism

Tourism brings benefits, but also costs: overcrowding, environmental stress, and cultural erosion. AI can help small countries avoid these pitfalls and model a more sustainable, responsible kind of tourism.

Smart resource management—powered by predictive analytics—allows destinations to anticipate and mitigate pressure on water, waste, and transport systems. AI can optimize crowd control in popular sites, suggest alternative destinations, and even guide travellers through eco-friendly behaviours.

In Peru, AI-driven AR and VR tools enhance the tourist experience without increasing footfall in fragile environments. Instead of letting Machu Picchu become overrun, digital versions offer immersive access from afar, protecting both the site and its appeal. For small countries, this isn’t just smart—it’s survival.

Tourism must grow, but not at the planet’s expense. AI offers the tools to find that balance.

Strategic Investment: Doing More with Less

Smaller budgets force sharper thinking. In the AI age, that’s an advantage. Instead of throwing money at every new trend, small countries can target high-impact investments in tourism technology that yield outsized returns. Take Peru again. Rather than trying to digitise everything at once, the government focused on integrating immersive technologies like VR into a select group of cultural sites. This created a viral marketing effect while also enhancing visitor satisfaction and reducing congestion.

AI doesn’t have to mean massive data centres or futuristic robotics. Sometimes, it’s as simple as smarter booking systems, better language translation for tourists, or digital trail maps in national parks.

With limited resources and a clear strategy, small countries can become showcases of cost-effective, high-impact innovation.

Collaboration: The Secret to Scaling Innovation

Public-private partnerships (PPPs) are the backbone of successful AI strategies in small countries. Why? Because collaboration fills the gaps in funding, expertise, and implementation.

Governments bring vision and regulation. Private firms bring talent and execution. Civil society ensures accountability. When these forces align, things move fast.

By the words of Barbara Rwodzi, the Minister of Tourism for Zimbabwe, asked: “How to put the SMEs (small to medium enterprises) into this new era of AI… The private sector is ahead, but how best can we speak the same language?”.

For example, innovation sandboxes—government-supported spaces where startups can test products without full regulatory approval—allow tourism-tech entrepreneurs to move from idea to implementation without bureaucratic drag. Accelerators focused on travel tech can connect local startups to global networks and funding.

And crucially, with fewer layers of governance, small countries can coordinate stakeholders far more efficiently than large federations or multilateral blocs.

Barriers to Watch: Infrastructure, Ethics, and Equity

Of course, it’s not all smooth sailing. Small countries face real challenges when it comes to adopting AI in tourism:

• Infrastructure gaps: Reliable internet, energy grids, and data storage are foundational, and often missing.
• Digital divide: Urban areas surge ahead while rural communities lag behind.
• Data ethics and privacy: Citizens must trust that their data won’t be exploited.

The solution? Don’t tackle these in isolation. Build cross-sector alliances. Seek international funding. Prioritize education and digital literacy.

And above all, treat ethics as a feature, not a bug. When small countries lead with transparency and inclusivity, they can avoid the trust crises that now plague larger nations.

Learning from the Best, but Not Copying Them

There’s value in studying global leaders like Singapore or the UAE, both of whom have invested massively in AI infrastructure and branding. But small countries shouldn’t try to replicate these model’s wholesale. What works for a city-state with a $400B GDP might not scale to a Caribbean island or Central Asian republic.

Instead, adapt selectively:

• From the EU’s AI Act, take inspiration for ethical frameworks.
• From Singapore, borrow ideas about centralized digital leadership.
• From the UAE, learn how to market a national tech brand globally.

Pick what fits. Leave the rest.

Leading by Example, Not by Size

The future of AI won’t just be shaped in Silicon Valley or Brussels—it will be shaped in places like Tashkent, Freetown, and Lima. Small countries have the chance to lead not in volume, but in vision.

With regulatory agility, smart investment, empowered communities, and sustainable goals, they can redefine what digital leadership looks like. In tourism—a sector built on storytelling, experience, and connection—AI gives them the tools to punch far above their weight.

If you’re a policymaker, ask yourself: where can we build an AI-enabled tourism experience in the next six months?

If you’re a business founder, ask: how can we use AI to solve a real problem for travellers or locals? For example, in Uzbekistan, the country last year set an AI development strategy, with more countries to follow.

And if you’re a citizen, ask: how can AI help your community thrive, without losing what makes it unique?

This isn’t just a tech story. It’s a human story. And the next chapter is being written right now, in the world’s smallest capitals.