Air Canada Ordered to Compensate Passenger Misled by Chatbot

In a precedent-setting case, a Canadian court ruled that Air Canada is responsible for misinformation provided by its AI chatbot, leading to a compensation order for a passenger.

• Air Canada must refund a passenger after its AI chatbot provided incorrect information about bereavement fare policies.
• The court rejected Air Canada's claim that the chatbot was a separate legal entity and held the airline accountable.
• The incident occurred in 2022 when Jake Moffatt was misled into believing he could apply for a bereavement fare refund after his grandmother's death.
• This landmark decision may have implications for other companies using AI-powered customer service agents.
• Experts debate the liability issues surrounding AI chatbots and their potential impact on customer service and legal accountability.

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