This month’s roundup of news from the technology sector includes: GDPR; possible prison time for executives connected to breaches; lowered tax incentives for innovation; and more.
Hotel News Now’s Tech Impact Report each month features a news roundup from the hotel technology sector. Subscribe to the free monthly report here.
Could execs face jail time in data breaches?
Many executives in the hotel industry (and other businesses) fear the financial ramifications of a data breach, but would the urgency to lock down sensitive data change if they faced jail time for what authorities viewed as negligence? Wired reports a new bill introduced in the U.S. Senate would “make nondisclosure (of breaches) a jailable offense no matter where it happens in the country.”
“The bill’s prospects are a little muddied, especially given that it basically echoes a 2014 bill that tried to do the same in the wake of the massive hack Target disclosed that year,” the news outlet reports.
Insurance a huge issue with GDPR
With the European Union’s looming shift to new General Data Protection Regulation rules, HNN’s Terence Baker reports insurance for data breaches could be a huge issue for hoteliers since the new regulations significantly increase the potential fines.
Moyn Uddin, a cyber and privacy consultant, said fines could “be as high as €20 million ($23.2 million) or 4% of global turnover, whatever is the highest, if you really screw up.”
AI’s true impacts still in the future
Listen to many tech experts, and they will tell you that artificial intelligence has already arrived in full force. But recent studies, reported on by The New York Times, claims the real impacts of AI may not be seen for a few years.
The Times writes that AI is making clear progress but experts warn “gains in specific tasks or game-playing proficiency are still a far cry from general intelligence. A child, for example, knows that a water glass tipping on the edge of a table will most likely fall to the floor and spill the water. He or she understands the physics of everyday life in a way artificial intelligence programs do not yet.”
R&D tax credit a tax-reform casualty
The Wall Street Journal reports one of the hidden effects of the Senate’s sweeping tax-reform bill, passed late Friday, is the elimination of a research-and-development tax credit that some business leaders believe was vital in spurring innovation.
It’s not a done deal that the credit will see the ax, The Journal notes, since the Senate bill must still be merged with the House of Representatives’ own tax reform legislation.
Compiled by Sean McCracken.