Air Canada BOT Defense-Blame not Fooling the Tribunal

Air Canada, Canada's largest airline, has been ordered to compensate a customer for inaccurate information provided by its chatbot. The airline tried to distance itself from the error by claiming the chatbot was responsible for its actions. This case raises questions about oversight of chat tools in the age of automation.

In 2022, Jake Moffatt contacted Air Canada to inquire about bereavement fares and retroactive refunds. The chatbot mistakenly advised him to apply for a refund within 90 days of ticket issuance. Moffatt booked full-price tickets to Toronto for a family funeral based on this information, only to be denied a refund later.

Air Canada admitted that the chatbot gave misleading advice and promised to update it. Moffatt sued for the fare difference, leading to a legal battle where Air Canada argued the chatbot was a separate legal entity responsible for its actions. The tribunal ruled in favor of Moffatt, ordering Air Canada to pay him for the fare difference, plus additional fees and interest.

The case serves as a cautionary tale for companies relying on chatbots for customer service, highlighting the importance of ensuring accurate information and accountability in automated services.

- CyberBeat