What would you have done? Air Canada's chatbot invented a fare — and the company had to pay

A customer asked Air Canada's chatbot about bereavement fares; the AI described a refund that did not exist. When the customer claimed it, three stances were possible: (A) honor what the chatbot promised; (B) refuse, arguing the AI got it wrong; (C) argue the chatbot is “responsible for its own answers.”

Air Canada tried (C). In February 2024, British Columbia's Civil Resolution Tribunal rejected it: a company remains responsible for what its AI says, just like any information on its website. Air Canada was ordered to pay about CA$812. The lesson: a chatbot that talks to customers binds the company — put guardrails on its answers and verify what it states.

Source: Moffatt v. Air Canada, Civil Resolution Tribunal (British Columbia), 14 February 2024.