In a landmark case, the Civil Resolution Tribunal of British Columbia has ruled that Air Canada must compensate a customer who was misled by the airline's chatbot, raising questions about corporate responsibility in the age of AI-powered customer service.
The tribunal ordered Air Canada to pay compensation to Jake Moffatt, a British Columbia resident who was misled by the airline's chatbot when seeking information about bereavement fares. The chatbot incorrectly advised Moffatt that he could apply for a refund within 90 days of purchasing his ticket, leading him to book a full-price fare to attend a family member's funeral in Toronto.
When Moffatt later applied for a refund, Air Canada denied his request, stating that bereavement rates did not apply to completed travel. The airline acknowledged that the chatbot had used "misleading words" but argued that the correct information was available on its website. Remarkably, Air Canada also claimed that the chatbot was a "separate legal entity" and thus responsible for its own actions.
Tribunal member Christopher Rivers dismissed this argument, stating, "While a chatbot has an interactive component, it is still just a part of Air Canada's website. It should be obvious to Air Canada that it is responsible for all the information on its website. It makes no difference whether the information comes from a static page or a chatbot."
The case raises important questions about the level of oversight companies should exercise over their AI-powered tools and the potential consequences of relying too heavily on automation. 'The robot did it' isn't a defence.
The rise of chatbots as potential replacements for human "information givers" may be inevitable, but incidents like this could cause companies to revisit their implementation timelines and ensure that proper system checks are in place.
Companies need to ensure that everyone – website, human, and chatbot – are all singing from the same hymnsheet. They should also check their vendor SLAs, risk coverage, and consider how they implement further rollouts with a 'human in the loop.' It's better to be safe than sorry. It is crucial for companies to strike a balance between the benefits of automation and the need for human oversight. The Air Canada case serves as a cautionary tale, reminding businesses that they cannot simply offload responsibility onto their AI tools and must remain accountable for the information provided to customers.
Moving forward, it is essential for companies to prioritise transparency, accountability, and collaboration when implementing AI-powered solutions. By working closely with AI developers, legal experts, and industry stakeholders, businesses can create a framework that maximises the potential of AI while minimising the risks associated with its use.