🔥 Air Canada to Compensate Customer for AI Chatbot's Misguidance

posted  18 Feb 2024
Photo - Air Canada to Compensate Customer for AI Chatbot's Misguidance
A Canadian court has ordered Air Canada to partially refund the cost of tickets ($482) and pay the legal fees of Jake Moffatt due to misleading information provided by the airline's AI chatbot. The client sought discounted tickets due to a family death and consulted the AI for details.

The chatbot suggested booking the tickets at the regular price and then applying for a refund. However, this policy contradicts the airline's guidelines, which are clearly outlined on its website. Moffatt's efforts to secure a refund only resulted in an offer of a $200 flight voucher.

Unsatisfied, Moffatt took legal action against Air Canada. The airline contended that the client should not have relied on the chatbot's advice, claiming no liability for the provided information because the application was registered to a different legal entity. Nonetheless, the court rejected this defense and decided in Moffatt's favor.

Air Canada
does not explain why customers should have to double-check information found in one part of its website on another part of its website,
tribunal member Christopher Rivers remarked.
This case is the first in Canada where a corporation tried to disavow responsibility for its own chatbot's information. Air Canada introduced the chatbot to streamline operations and reduce call center workload, mainly dealing with emergencies. The airline has temporarily disabled the chatbot to implement updates.