Air Canada held liable for its chatbot (Moffatt v. Air Canada)

What happened

Air Canada's chatbot told a customer he could apply for a bereavement-fare discount after flying, contradicting the airline's actual policy. A tribunal found the airline liable for negligent misrepresentation and rejected its argument that the chatbot was a separate entity.

Root cause

The chatbot produced inaccurate policy information, and the company assumed no liability for AI-generated answers on its own site.

Fix / outcome

Air Canada was ordered to pay damages and reportedly took the chatbot offline. The ruling established that companies are liable for their chatbots' statements.

Sources