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Future of Travel Pt 4: AI poses risks in tourism
AI’s reliance on data, risk of misinformation, and environmental impact pose significant challenges for the tourism sector, a new OECD report shows.
Artificial intelligence holds tremendous potential to transform the travel and tourism industry, but its adoption is not without risks.
To ensure AI serves as a tool for progress rather than disruption, a new report from the G7 and the Organisation for Economic Co-operation and Development (OECD), titled Artificial Intelligence and Tourism, highlights the technical, socio-economic, and environmental challenges that must be addressed.
Privacy risks
AI systems rely heavily on vast amounts of personal data to personalise travel experiences and optimise operations. This data powers features such as real-time recommendations, automated itinerary planning, and tailored promotions. However, these benefits come with significant privacy risks.
The sharing of sensitive data across multiple service providers creates vulnerabilities that can lead to privacy breaches and data misuse. Furthermore, global discrepancies in data protection laws add to the complexity. Tourists often cross borders, placing their data under varying legal jurisdictions, which can undermine trust in AI-powered solutions.
Bias and misinformation
AI’s reliance on algorithms introduces the risk of bias, potentially prioritising popular destinations while neglecting less-visited locales. This perpetuates overcrowding at tourist hotspots and leaves emerging destinations struggling for attention.
Generative AI also poses risks of misinformation. Fake reviews, manipulated images, and deepfakes can mislead travellers, causing disappointment and damaging reputations. Additionally, large firms may benefit disproportionately from AI-driven market competition, sidelining smaller businesses and creating an uneven playing field.
Environmental impact
AI-powered technologies, while offering sustainability solutions like resource optimisation and visitor flow management, come with a significant environmental cost. Data centres powering AI systems consume vast amounts of electricity, with projected consumption exceeding 1,000 terawatt-hours by 2026.
Efforts to reduce this impact include shifting to renewable energy, optimising cooling systems, and repurposing heat generated by data centres. However, balancing AI’s environmental footprint with its benefits remains a complex challenge.
Labour challenges
AI automation is reshaping the tourism workforce by replacing roles such as hotel check-ins and housekeeping. While this boosts efficiency, it poses a risk to workers in roles requiring fewer specialised skills. To address this, reskilling and upskilling programs are essential, though they require significant investment.
The report emphasises the need to manage workforce transitions carefully to ensure fair working conditions and job security in the face of AI-driven changes.
Ethical considerations
As AI becomes more integrated into the tourism sector, ethical challenges are emerging that require careful attention. One key concern is the potential for AI systems to perpetuate or amplify biases, inadvertently discriminating against certain groups of travellers. For example, facial recognition technologies used in airports and security checkpoints have shown higher error rates for certain demographic groups, leading to delays and additional scrutiny for affected travellers.
AI-driven language processing systems often prioritise English, leaving non-English-speaking tourists at a disadvantage. This raises questions about inclusivity and accessibility in AI-powered services, particularly in regions with diverse linguistic populations.
There are concerns about transparency and accountability in AI algorithms, which can make decisions that are difficult to trace or challenge. Without proper oversight, AI could unintentionally undermine tourists’ trust, especially if used for dynamic pricing strategies that lead to inconsistent or unfair costs for services.
A path forward for AI in travel
AI holds immense potential to transform travel, but addressing key challenges like data privacy, algorithmic bias, and environmental impact is critical. International collaboration and clear guidelines will ensure AI enriches the tourism experience while preserving its cultural and environmental values. Thoughtful adoption of AI can revolutionise travel and tourism without compromising its human essence.
* This is the fourth in a series of articles based on the OECD report – ‘Artificial Intelligence and tourism’. Read the Future of Travel series here.
* Read the ‘Artificial Intelligence and tourism’ report here.
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