Air Canada has been instructed to refund a passenger who was mistakenly offered a cheaper bereavement fare by the airline's AI chatbot. This ruling could set a precedent as more companies adopt artificial intelligence for customer service.
In a landmark case, Air Canada has been ordered to refund a passenger who received 'misleading' information from its AI chatbot which mistakenly offered a cheaper bereavement fare. The ruling could have far-reaching implications as companies increasingly rely on AI technology for interactions with customers.
Air Canada has been instructed to refund a passenger who was mistakenly offered a cheaper bereavement fare by the airline's AI chatbot. This ruling could set a precedent as more companies adopt artificial intelligence for customer service.
Jack Moffat, residing in Vancouver, inquired with the airline's support chatbot about bereavement rates after his grandmother passed away in November 2022.
The chatbot responded to the grieving grandson by stating that he could avail the lower price up to 90 days after flying by filing a claim.
However, the airline's official bereavement policy does not include provisions for post-flight refunds. Additionally, it specifies that all discounts must be approved beforehand.
Moffatt ultimately purchased a roundtrip ticket to Toronto for the funeral at a cost of approximately $1,200. However, upon reaching out to Air Canada for a refund, he was informed that he did not meet the eligibility criteria, as per the court filing.
As per the complaint, Moffatt made multiple attempts to reclaim the money by sending numerous emails to Air Canada along with screenshots of his conversation with the chatbot.
However, on February 8, 2023, an Air Canada representative notified him that the chatbot had provided "misleading words" and that the company's bereavement policy did not apply discounts retroactively.
The airline informed Moffatt that it would update the chatbot to ensure that its messages were consistent with the information posted on the company website.
The annoyed passenger subsequently filed a lawsuit against the airline, which argued in court that the chatbot was a “separate legal entity” and therefore accountable for its actions.
Consequently last week, a Canadian tribunal ruled in favor of Moffatt, directing Air Canada to issue a refund for approximately $600.
Christopher Rivers, a member of the civil resolution tribunal in British Columbia, stated, “While a chatbot has an interactive component, it is still just a part of Air Canada’s website. It should be obvious to Air Canada that it is responsible for all the information on its website.”
“It makes no difference whether the information comes from a static page or a chatbot.”
“I find Air Canada did not take reasonable care to ensure its chatbot was accurate,” Rivers continued. “While Air Canada argues Mr. Moffatt could find the correct information on another part of its website, it does not explain why the webpage titled ‘Bereavement travel’ was inherently more trustworthy than its chatbot. It also does not explain why customers should have to double-check information found in one part of its website on another part of its website.”
On Monday, the chatbot, which was launched last year, was not accessible on Air Canada's site.
An Air Canada spokesperson stated that the airline will adhere to the tribunal's decision.
"We consider this matter closed," the spokesperson told The Post on Monday.