Air Canada AI Chatbot Controversy

SOURCE thehill.com
Air Canada must pay a partial refund to a Vancouver man after its AI chatbot incorrectly promised a discount for bereavement fares, leading to a landmark case for AI in business. The airline's support staff denied the promised discount, claiming the chatbot's replies were nonbinding.

Key Points

  • Moffatt asked the chatbot about bereavement fares post-flight, which the actual policy did not support.
  • Tribunal ruled in favor of Moffatt for negligent misrepresentation by Air Canada.
  • Air Canada must pay Moffatt $483 refund plus nominal fees.

Pros

  • Recognition of responsibility for AI interactions
  • Setting a precedent for AI accountability in business

Cons

  • Customer inconvenience and frustration
  • Potential legal implications for businesses using AI chatbots