Being asked to contribute to this month’s legal briefing happened to coincide with a classic parenting moment: my youngest lost his wallet on a night out. Of course, it contained not just his bank cards, but also his driving licence – the all-important proof of age he’d planned to use for his night out. What a nightmare, but we’ve all been there. If only this had happened a year later. By then, he’d (hopefully) be a little wiser and potentially able to rely on digital ID stored on his phone.

In fact, it’s actually quite likely that by this time next year, he won’t need physical ID at all. With technology advancing rapidly, digital ID stored on smartphones is becoming a viable alternative. It’s not yet fully embedded in everyday use, but it’s certainly on its way. The loss of my son’s wallet got me thinking – not just about the legalities of using digital ID for alcohol sales, but about what other artificial intelligence (AI)-powered tools and technologies are on the horizon, and how they might shake things up in the hospitality sector in the near future.

In early 2024, the then Conservative government launched a consultation on whether digital identities and other age assurance technologies, including age estimation, should be allowed to play a role in verifying someone’s age when buying alcohol. The idea is simple: make age verification faster, more secure and less of a hassle for everyone involved. One of the main benefits would be fewer lost or stolen documents, which could help reduce identity theft and the use of fake IDs. It could also speed up service at the bar or self-checkout if age can be verified through a phone app rather than by showing a passport or driving licence.

A clear majority of respondents to the government’s consultation (72%) agreed that the Licensing Act 2003 should be updated to allow digital identities to be used as proof of age for alcohol sales. This would apply across all types of retail settings, from supermarkets and off-licences to restaurants and venues in the night-time economy. More than eight in ten (82%) of respondents also agreed that digital identity providers should be certified against government-approved standards within the UK Digital Identity and Attributes Trust Framework. This would ensure that the technology meets recognised standards, providing the trust and confidence needed for widespread use.

However, people’s opinions on liability were more mixed. Around 36% of respondents felt the Licensing Act should be amended to place more responsibility on the provider if its technology was found to be faulty or inaccurate. Meanwhile, 26% thought the current framework should remain, meaning the licence holder would remain responsible, with any issues involving the technology dealt with through commercial contracts. Another 22% argued the licence holder should take on more responsibility to ensure the technology works properly, and 16% felt responsibility should be shared between both the licence holder and the technology provider.

The main takeaway is clear: any digital age-checking system needs to be reliable and accurate. If it isn’t, operators could risk breaching their licence conditions. The Data (Use and Access) Bill is currently making its way through parliament and includes measures to put the UK Digital Identity and Attributes Trust Framework on a statutory footing. This would formalise the standards digital identities must meet. 

The consultation also sought views on implementing age assurance technology (such as using a face scan) as proof of age for alcohol sales. However, the government hasn’t yet introduced a comprehensive framework for all age assurance technologies, and age estimation technology, while already available, is still waiting for its official approval in the UK. That said, I’m confident that over the next few years, this will become an accepted method of age verification, and eventually, we may not need to show ID at all to prove our age.

Crazy times, but the use of this kind of AI in hospitality isn’t as far off as it seems. McDonald's, for example, is already using AI in its restaurants to boost order accuracy, predict equipment failures and improve customer experience. Its AI-powered voice recognition system at the drive-thru helps streamline orders, reduce waiting times and minimise mistakes. We’ve also already seen self-serve machines in bars and shops where your basket is tallied as you walk around. While these systems can be convenient, they still require human supervision to ensure no underage sales take place. The development of age estimation, facial recognition and other technologies could one day make human involvement in the process (almost) redundant.

In theory, this could lead to significant savings by reducing the need for bar and retail staff. However, for AI to truly replace human workers, it needs to be incredibly reliable. Technology like facial recognition and age estimation must work flawlessly to prevent mistakes – something that’s still far from guaranteed. In this context, a final human check would always be a safer bet, especially when it comes to something as important as age verification. With AI handling tasks like age verification and order processing, businesses might find themselves relying too heavily on technology that could malfunction or be hacked, leading to costly mistakes or breaches of compliance. 

Finally, there’s the impact on staff. Removing human interaction from hospitality could undermine the personal touch that makes experiences memorable. For example, automated hotel check-ins can be efficient but feel impersonal, offering no opportunity to ask questions or request additional services. In bars, the absence of staff interaction means missing the chance to welcome guests properly and the opportunity to upsell drinks or recommend certain products. Human staff bring value far beyond simple transactions – they offer knowledge, rapport, and adaptability, which AI simply can’t replicate.

So, what about other potential uses of AI in hospitality?

• Research shows smartphones could one day detect intoxication by analysing eye movement, co-ordination and physical movement. A study at the University of Massachusetts found they could predict blood alcohol concentration with impressive accuracy. While useful in medical emergencies, there are significant privacy and ethical concerns about using this in a pub to assess sobriety before serving another drink.

• AI could also be used for automated licensing compliance audits, scanning CCTV footage to monitor overcrowding and spot breaches of licensing conditions. This could streamline operations and reduce the need for manual checks.

• Licensing authorities and police might use AI to remotely monitor venues, identifying overcrowding or signs of intoxication, ensuring better enforcement without constant on-site presence.

• AI-driven compliance scoring could emerge, where businesses with poor compliance histories face more inspections, while those with good track records could face fewer checks.

Ultimately, while AI has the potential to enhance efficiency and streamline operations in the hospitality sector, it’s crucial to remember that technology alone cannot absolve operators of their legal responsibilities. While digital ID may be a useful tool that is on the horizon, businesses must still ensure that their use of AI aligns with the current legal framework, taking all reasonable steps to prevent underage alcohol sales. 

As AI develops, it’s important to view it as a supportive tool, not a substitute for human oversight or due diligence. While the future of AI in hospitality is exciting, it’s vital to remember that the law will always lag behind technology, and operators must balance innovation with compliance to avoid costly mistakes.