ARTIFICIAL INTELLIGENCE
as a CV-scanning tool to rank job applicants – and subjected to specific requirements. Finally, those AI applications not
considered high-risk or banned will be left largely unregulated. As with the EU’s General Data
Protection Regulation (GDPR) in 2018, the Act could potentially eventually become a global standard. Once the regulation comes into effect,
foodservice providers may have to share more information, says Julia Buech, senior consumer foods analyst at Rabo Research Food & Agribusiness. “Foodservice providers should start
to prepare now, and the best thing to do is to familiarize themselves with what the act actually means,” she adds. “Tey might soon find out that the implications for their business will be limited. “For most foodservice AI operations,
they would probably fall into the low-risk category. So there’s not too much to worry about at the moment – although they will have the obligation of informing the client that they are dealing with a machine and not a human, for instance – but at the same time specific requirements depend on the organization of the business, the size, the functionality.” Automated recruitment could be
rated high risk, however, so those using those systems must ensure they meet the obligations. “Companies need to make
sure they choose a “clean” provider of AI systems, but in the end they themselves need to keep on top of what they are doing, and how they are interacting with their customers,” says Buech. She said the regulation is necessary to make AI more secure and to protect customers, as many restaurants, foodservice and food manufacturers “don’t know what they’re dealing with at the moment.” “It feels like a bit of a lawless jungle out there at the moment when it comes to AI,” says Buech.
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However, the rapid nature of technological progress could mean different applications are used by the time the Act comes in. “Everybody will be watching this
EU Act quite closely because it’s quite unique in the area of AI,” says Buech. “But by the time this comes into force things might have developed so much that it seems like an outdated move already.” While labor costs are rising,
automation costs are falling and robot capabilities are continuing to advance. According to a GlobalData report,
the robotics industry was worth $130.7bn in 2020 and is expected to achieve annual growth of more than 15% during the period 2020-2025. Some of the leading adopters in
hospitality so far include big players like Chipotle, Starbucks, Too Good To Go and Yum! brands.
“AI goes beyond machine learning, where the more data the processor receives, the better it can provide answers. Generative AI, on the other hand, involves processors that “appear to mimic human intelligence”
"You have to bear in mind that all is
moving very fast, very rapidly – but there are still a lot of players that have nothing,” says Castroviejo. Te advice from the experts is that the
best way for restaurants to take advantage of the benefits of AI with the risks in mind is to focus on one or two solutions first. “Once operators are comfortable with these solutions, then they can start experimenting more, such as using AI for predictions to avoid equipment failures and create hyper-personalized customer experiences to help drive customer loyalty and return visits,” says Tait, adding that the hospitality sector has been slower than others in adopting AI. For now the impact of the AI Act
looks to be quite light-touch. “AI, generally speaking, is a tool, an accelerator, an enabler, but it’s not anything that anyone in the foodservice industry needs to be threatened by at this stage,” concludes Buech.
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