CHLA Lodging News May/June 2024

www.calodging.com May + June 2024 7 FEATURE NAVIGATING THE INTERSECTION OF AI AND LAW “Down the road, we will reap the benefits of AI tools working faster and not have to double check everything, but at this early stage, we need a lot of human training and oversight to check and correct potential biases or patterns that may be considered discriminatory,” Chiu added. Conclusion With so much on their plates, many hoteliers may not want to introduce yet another piece of new technology into their daily operations. And while there is an investment in time and resources required with any new technology, AI’s potential makes it worth it. “Whether you’re a small property or a large property, you can use AI tools to your benefit,” Carbonniere said. With so many products and platforms on the market, hoteliers can pick and choose what makes sense for their property. At the same time, Sweeney added that it’s important for hotels to stay educated on what kind of products are out there and what’s coming down the pipeline so they can choose the technologies that make sense for their bottom line. For hoteliers who may be hesitant to disrupt their current operations with new technology, Sweeney said it’s important to stay open-minded. “AI technologies tend to be a lot easier to use than older technologies because they mimic human behavior,” he said. “I don’t see AI as a replacement for any sort of staff or connection that hoteliers are making with guests,” Carbonniere added. “AI is a co-pilot that helps cut down on some administrative tasks and allows associates to do what they do best, which is connect with guests and provide a great experience.” While AI is already being used across many industries, including hospitality, its potential is still widely unknown. As lawmakers begin to establish workable regulatory frameworks for how the technology is and could intersect with all facets of our lives, they confront a challenging paradox: defending against the potential misuse of technology with an almost unlimited number of potential use cases but with a limited number of current realworld applications. In other words, they are regulating the future before it reaches the station. The crux of the matter lies in anticipating and mitigating potential repercussions before they manifest. Across the United States, legislators have introduced various bills and spot bills and put together various working groups that attempt to grapple with AI and its nebulous consequences. These efforts span a spectrum of concerns, from the ethical implications of AI replacing human labor to deep fakes to AI’s influence in political campaigns. On the state level, CHLA is working to ensure that proposed regulations broadly cover the future potential of AI in the hospitality industry. Assembly Bill (AB) 2930, introduced by Assembly Member Bauer-Kahan, seeks to do just this. From concierge Chatbots to facial recognition and data analysis technology to room-service delivering robots, AI technologies in the hospitality industry have direct impacts on both hotel employees and guests. AB 2930 seeks to broadly regulate these kinds of automated decision tools that make consequential decisions that have a legal, marital, or significant effect on an individual’s life. These areas cover employment, including any decisions around pay or promotions, hiring, termination, and automated tasks. The bill also covers education, housing, essential utilities, family planning and adoptive services, reproductive services, healthcare, financial services, the criminal justice system, legal services, private arbitration, medication, and voting. AB 2930 attempts to prevent algorithmic discrimination by requiring impact assessments, notices, governance programs, policy disclosures, and civil liability. As new applications of AI continue to emerge and evolve, we must remain vigilant and adaptive in our approach to its role in the hospitality industry. CHLA will continue to keep our members apprised of AI issues that impact how you do business and fight for comprehensive regulation.

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