Vancouver, British Columbia – A Vancouver man has won a partial refund from Air Canada in a case that sets a potential precedent for the use of artificial intelligence in business. The Canadian tribunal ruled in favor of Jake Moffatt, who sought a bereavement fare after the death of his grandmother. He interacted with the airline’s chatbot, which erroneously promised him a discount on his flight ticket.
Moffatt later discovered that the airline’s actual bereavement policy did not include a post-flight refund, and the discount must be approved beforehand. Despite this, he booked and flew from Vancouver to Toronto and back for approximately $1200 and requested the promised discount, only to be told by the airline’s support staff that the chatbot’s responses were non-binding.
In response to the civil tribunal, Air Canada argued that the chatbot is a “separate legal entity” and should not be held accountable for its interactions with customers. However, tribunal member Christopher Rivers ruled in favor of Moffatt, declaring that the airline committed “negligent misrepresentation” and must honor the chatbot’s promised discount.
Rivers ordered Air Canada to pay Moffatt the promised $483 refund, criticizing the airline for not taking reasonable care to ensure the accuracy of its chatbot. The support chatbot, which was launched last year, was not visible on the airline’s website as of Sunday.
The ruling could have far-reaching implications for the use of artificial intelligence in business interactions. It highlights the need for companies to ensure the accuracy and accountability of their AI systems, particularly in customer-facing situations. As AI continues to play a growing role in customer service and other areas of business, this case underscores the importance of transparency, accuracy, and accountability in its implementation.