P092 Consumer Protection in AI-Driven Halal Tourism: Assessing Malaysia's Regulatory Framework from the Sarawak Perspective

Abstract

The use of Artificial Intelligence (AI) in the halal tourism industry can be seen particularly through the use of smart chatbots, custom recommendation engines, automated booking setups and digital trip planners. Although these tools offer better efficiency and smoother user experiences, there are serious issues concerning AI-generated systems when the systems accidentally provide inaccurate or wrong information on halal-certified products and services. In consequence, it may mislead Muslim travellers and thus break the consumers’ trust. Sarawak, as a multicultural destination, is currently working to expand its market as a Muslim-friendly travel hub in Malaysia. This study examines whether Malaysia’s current legal and regulatory framework is robust enough to protect consumers by focusing specifically on the challenges within Sarawak. Using a qualitative doctrinal legal approach, the study concentrates on federal laws governing consumer rights, tourism operations, data privacy, halal trade descriptions, together with the AI ethical guidelines. The analysis indicates several gaps, including the lack of a statutory mechanism for AI transparency, algorithm accountability and liability for automated errors. It also argues that the existing commercial laws were designed for a conventional approach and, as such, are insufficient for digital platforms. Guided by the concept of maqasid al-Shariah, this study proposes a regulatory model that integrates AI transparency, human oversight and halal safeguards.