Air Canada Ordered to Honor Refund After AI Chatbot Misadvises Passenger

A Canadian tribunal ruled that Air Canada must honor a refund policy mistakenly communicated by its AI chatbot, setting a precedent for AI accountability.

A grieving passenger was misled by Air Canada's AI chatbot regarding the airline's bereavement fare policy, leading to a legal dispute.
The Civil Resolution Tribunal of British Columbia found Air Canada responsible for the chatbot's advice, awarding the passenger damages and fees.
Air Canada attempted to argue that the chatbot was a separate legal entity and not liable for its misleading information, a claim the tribunal rejected.
This case marks a significant moment in the accountability of AI-powered customer service tools, potentially setting a legal precedent.
Experts suggest this case could influence how companies deploy AI chatbots, emphasizing the need for accuracy and liability for misinformation.