Source: Fox Williams

Fox Williams provides a targeted analysis of the European Union's AI Act, specifically focusing on its implications for the travel industry. The article explains that many travel companies are increasingly using AI-powered tools for a variety of functions, such as personalized recommendations, dynamic pricing, customer service chatbots, and even for evaluating job applicants in their recruitment processes. While these applications can enhance efficiency and customer experience, they also fall under the regulatory scope of the new AI Act, creating new compliance obligations.

The analysis advises travel companies to conduct a thorough audit of their AI systems to determine their risk level under the Act's classification framework. For example, AI systems used for recruitment or those that engage in certain forms of profiling could be classified as "high-risk," subjecting them to stringent requirements regarding data quality, transparency, human oversight, and accuracy. The article stresses the importance of understanding these obligations early to ensure that new and existing AI technologies are developed and deployed in compliance with the law. Travel businesses are urged to prepare by mapping their AI usage, assessing the associated risks, and implementing the necessary governance and documentation procedures to meet the Act's requirements.