IJTTHL1/2025

V. LEGAL AND ETHICAL CHALLENGES Law on obligations30 can be applied in AI-related activities, such as contracts concluded online or smart contracts. It remains to be seen how the general liability provisions of the Law on obligations will be applied in cases where AI systems cause harm to third parties. Further, if AI is applied to consumer products and services it can raise concerns about consumer rights, product liability, and misleading advertising, in that case The Consumer Protection Act31 should be applied. There are several major concerns when it comes to the use of AI. First of all, there are concerns about Data Privacy because if tourists trust the operator, they are likely to provide him with personal data, and in turn this provides the provider with tools and information to effectively deploy AI in its business, to enhance tourist experience. Namely, providers of tourist services shall ensure that they deal with tourists’ personal data in a way that encourages trust. AI systems rely heavily on data and are collecting, storing and analysing the vast amounts of personal and sensitive information of tourists. Particular concerns arise about tourist sensitive data (personal data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs; genetic data, biometric data processed solely to identify a human being; health-related data; data concerning a person’s sex life or sexual orientation)32 Also concerns arise in context of automated decision making (solely by automated means) or profiling (processing of personal data for the purposes of evaluation of certain things about tourist). 33 Safeguarding data and ensuring its responsible use is crucial for maintaining trust in AI technologies. The Personal Data Protection Act of Montenegro34 is still not in compliance with GDPR regulations. Because of this, the 2008 Montenegrin data protection law has been criticized for not meeting basic EU requirements for privacy and data protection. Providers of tourism services shall ensure data security, availability, and integrity to avoid leaks, breaches, and misuse. Also, to ensure data privacy and security are maintained, it is essential to implement robust encryption methods, anonymize data, and adhere to stringent data protection regulations Secondly, there are concerns about transparency and accountability. Complex AI algorithms often lack transparency, making it challenging to understand how 30 “Official Gazette of Montenegro,” nos. 47/08, 04/11, and 22/1731 “Official Gazette of Montenegro,” nos. 2/14, 6/14, 43/15, 70/17, 67/19, and 146/21. 32 Article 4(13), (14) and (15) andArticle 9 and Recitals (51) to (56) of the GDPR. 33 Charles Kerrigan, Artificial Intelligence, Law and Regulation, Edward Elgar, 2022, p.335. 34 “Official Gazette of Montenegro”, nos. 79/08, 70/09, and 44/12. 104 MILANA RANKOVIĆ | JAKŠA VUKOVIĆ

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