Vancouver, Canada – Air Canada’s use of AI-powered chatbot technology has landed the airline in legal trouble after a customer received incorrect information about a refund for his airfare. The incident, which took place in 2022, involved customer Jake Moffatt and the airline’s chatbot, leading to a civil court case that has far-reaching implications for the use of AI in customer service.
Moffatt sought information from the chatbot on how to qualify for bereavement fare for a last-minute trip to attend a funeral. The chatbot provided incorrect information, stating that Moffatt could retroactively apply for a refund of the difference between a regular ticket cost and a bereavement fare cost. However, Air Canada’s official bereavement travel policy does not allow for refunds for travel that has already happened.
When the airline refused to issue the reimbursement, Moffatt took legal action, leading to an unprecedented case in a Canadian court. Air Canada’s defense included assertions that the chatbot was solely responsible for the misinformation and should be considered a “separate legal entity” accountable for its own actions. However, the tribunal ruled against the airline, stating that it is ultimately responsible for all the information on its website, regardless of whether it comes from a static page or a chatbot.
The decision in this case could have significant implications for companies utilizing AI or machine-learning powered “agents” in their customer service operations. It raises questions about accountability and responsibility when it comes to the actions and information provided by AI technology.
This case serves as a reminder of the importance of accurate and reliable information in customer interactions, especially when AI technology is involved. As companies continue to integrate AI into various aspects of their operations, it is essential to ensure that proper oversight and accountability measures are in place to prevent similar incidents in the future.
The outcome of this case underscores the need for clear guidelines and regulations concerning the use of AI technology in customer interactions. As AI continues to play an increasingly prominent role in customer service, it is crucial for companies to prioritize accuracy and accountability to maintain customer trust and satisfaction.