A Canadian tribunal has ruled that Air Canada must provide a partial refund to a Vancouver resident as promised by the airline’s artificial intelligence (AI) chatbot. The decision, delivered on Wednesday, marks a potential milestone in the realm of AI application within business settings.
In November 2022, Jake Moffatt inquired about bereavement fares through the airline’s AI support chatbot following his grandmother’s passing. The chatbot indicated that discounted fares were indeed available and that Moffatt could claim the discount within 90 days after his flight.
Contrary to the chatbot’s assertion, Air Canada’s official bereavement policy does not mention post-flight refunds, emphasizing the necessity of prior approval for discounts. Despite this, Moffatt proceeded to book and undertake a round-trip journey from Vancouver to Toronto at a cost of approximately $1200, later seeking the promised discount of roughly half the fare.
However, when Moffatt approached the airline’s support staff for the discount, they informed him that the chatbot’s responses were inaccurate and not binding. Air Canada’s defense in the civil tribunal rested on the argument that the chatbot constituted a distinct legal entity from the company, thus absolving it of responsibility for customer interactions.
In a decision favoring Moffatt, tribunal member Christopher Rivers concluded that Air Canada had engaged in “negligent misrepresentation” and must honor the commitment made by its chatbot. Rivers emphasized Air Canada’s overarching responsibility for the accuracy of information disseminated through its website, regardless of the medium used.
Accordingly, Air Canada has been instructed to reimburse Moffatt the promised amount of $483 along with nominal fees. Rivers criticized the airline for failing to exercise reasonable diligence in ensuring the accuracy of its chatbot’s responses. He questioned why customers should be expected to cross-reference information provided by the chatbot with other sections of the website.
Notably, as of Sunday, the support chatbot in question was no longer visible on Air Canada’s website.
