Keywords: Tourism in Montenegro, AI in tourism, artificial intelligence, smart tourism, sustainable development. I. INTRODUCTION Tourism industry is being transformed by the Artificial Intelligence. Not only that it enhanced decision-making, operational efficiency and customer experiences, but it has also highlighted various legal and ethical challenges. One thing is sure - potential of AI is infinite. AI technologies (such as chatbots, virtual assistants, and personalized recommendation systems etc.) can significantly develop tourism by improving efficiency and management. However, use of AI can cause serious legal and ethical concerns about data privacy, algorithmic bias, fairness, transparency, accountability and liability in the event of AI-related incidents. This paper analyses the potential that AI has for the development of Montenegro as a sustainable tourism destination. Montenegrin economy, which is heavily dependent on tourism, is facing numerous challenges when it comes to digital transformation. Currently it is introducing smart specialization as a way to facilitate economic growth and to enhance tourist infrastructure and upgrade public-private cooperation.3 Application of new technologies and smart tourism solutions has led service providers in the sector to transform their business in order to use their potentials and resources more efficiently. However, Montenegro lacks specific legal framework for Artificial Intelligence and this legal gap is in practice fulfilled by the use of general legal principles and provisions from various legal acts. It is suggested that Montenegro, as a candidate for EU accession, should adopt clear guidelines on the use of AI, and therefore harmonize its law in this field with EU standards. Potential law that would regulate artificial intelligence should strive to take a balance between innovation and human rights protection, particularly consumer protection. It is concluded that if used properly and regularly, AI can transform Montenegrin tourism and contribute significantly to its recognition as a destination for sustainable tourism, and in other scenario, it can create large space for abuse and cause serious threat to human rights in Montenegro. 3 Maximilian Benner, Tourism in the context of smart specialization: the example of Montenegro, Current Issues in Tourism, Volume 23, 2020 - Issue 21, p. 2624-2630. 96 MILANA RANKOVIĆ | JAKŠA VUKOVIĆ
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