Hospitality businesses using AI to anticipate preferences, maximize revenue, and detect fake reviews; legal risks exist.
The hospitality industry is increasingly turning to artificial intelligence (AI) to improve their operations and gain insights. AI can identify and analyze guests’ preferences and interests, allowing for tailored recommendations, as well as dynamic and personalized pricing. Additionally, AI can help detect fake social media reviews and help build trust and credibility with customers. However, the use of AI does come with some risks, such as profiling, bias and inaccuracy, as well as potential concerns with dynamic pricing. To ensure AI is used responsibly, the industry must consider relevant laws and regulations, such as the General Data Protection Regulation and the EU Commission’s proposed AI Act.
AI offers a variety of potential benefits to the hospitality industry. For example, AI can help identify guests’ preferences and interests, allowing for tailored recommendations and enhancing the customer experience. Additionally, AI can automate the process of setting room prices, responding to changes in demand and maximizing room occupancy. Furthermore, AI can help detect fake social media reviews, helping to build trust and credibility with customers.
Although AI can offer many advantages, there are also risks associated with its use. For example, if AI systems are not appropriately developed and trained with a high-quality data set, there is a risk of profiling, bias and inaccuracy. Additionally, dynamic pricing mechanisms may be difficult to detect, target vulnerable consumers and have unfair distributive effects. Furthermore, the current legal frameworks lack reliable definitions and legal frameworks to govern the use of AI for detecting fake reviews.
To ensure AI is used responsibly, the hospitality industry must consider relevant laws and regulations. For example, biometric data falls under the General Data Protection Regulation’s definition of “special category data”, and the UK Information Commissioner’s Office has warned that it will investigate organizations that fail to act responsibly when deploying biometric and emotional analysis technologies. Additionally, the EU Commission’s proposed AI Act is still under review, providing a future-oriented basis for AI deployment in the hospitality sector.
Overall, AI offers a variety of potential benefits to the hospitality industry, including supporting guest service and pricing and ensuring true representations appear in social media reviews. However, the industry must consider legal risks and uncertainties when deploying AI, and ensure they are adhering to relevant laws and regulations. With the right precautions, AI can help the hospitality industry improve their operations and gain insights.
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