A British Columbian passenger was told he could not have a refund on bereavement purchases despite buying tickets based on what Air Canada’s AI chatbot had initially told them.
Air Canada Ordered to Refund Passenger
A Canadian tribunal has ruled that Air Canada must provide a partial refund to a Vancouver man, Jake Moffatt, based on promises made by the airline’s AI chatbot.
Bereavement Fare Inquiry
Moffatt was dealing with the tragic death of his grandmother in November 2022 and approached Air Canada’s chatbot to inquire about bereavement fares.
The chatbot assured him of a discount, indicating a post-flight refund option within 90 days.
Chatbot’s Misleading Message
The Chatbot originally said to Moffatt, “If you need to travel immediately or have already travelled and would like to submit your ticket for a reduced bereavement rate, kindly do so within 90 days of the date your ticket was issued by completing our Ticket Refund Application form.”
Relying on the Chatbot
Influenced by the chatbot’s instructions, Moffatt bought a one-way ticket from Vancouver to Toronto for $590 before buying a return for an extra $627 with the promise of a refund later down the line.
Chatbot’s Assurances vs. Airline’s Bereavement Policy
Despite the chatbot’s assurances, the airline’s actual bereavement policy does not include a post-flight refund, making the AI chatbot’s response unreliable.
Chatbot’s Misleading Words
Moffatt sought a partial refund that was promised by the chatbot but faced resistance from Air Canada, which dismissed the chatbot’s responses as “misleading words.”
Chatbot as a “Separate Legal Entity”
Air Canada argued in the civil tribunal that the chatbot should be considered a “separate legal entity” and that it is “responsible for its own actions” despite being owned by the airline.
Tribunal Ruling
Tribunal member Christopher Rivers ruled in favor of Moffatt, determining that Air Canada committed “negligent misrepresentation” and must honor the promises made by the chatbot.
Chatbot as Part of Air Canada’s Responsibility
Rivers dismissed Air Canada’s argument, asserting, “While a chatbot has an interactive component, it is still just a part of Air Canada’s website.”
Air Canada’s Negligence
“It makes no difference whether the information comes from a static page or a chatbot,” Rivers continued.
Air Canada’s “Obvious” Mistake
Rivers argued that it should have been “obvious” to Air Canada that they would be held responsible for the chatbot’s mistake.
Ordered Refund and Damages
Air Canada is ordered to fulfill the promised refund, and Moffatt is entitled to damages, calculated based on the extra fees and taxes he would have paid, amounting to $650.
Lack of Due Diligence
Rivers criticized Air Canada, “I find Air Canada did not take reasonable care to ensure its chatbot was accurate,” while also ordering the airline to pay extra fees to Moffatt.
Chatbot’s Instructions Deemed Reasonable
Moffatt’s reliance on the chatbot’s instructions is deemed reasonable, “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,” Rivers explained.
Doubts Cast on Air Canada’s Web Content
Rivers questioned why customers should have to double-check information, “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,” he said.
Protecting Passenger’s Rights
The President of Air Passenger Right, Gabor Lukacs, said, “It’s a cutting edge ruling when it comes to technology,” and “It’s a great ruling, I’m really pleased.”
Evolution in Air Canada’s Digital Presence
The chatbot, launched last year, was taken down from Air Canada’s customer service section of the website after the airline lost the lawsuit.
Moffatt’s Months of Agony
According to the tribunal, Moffatt tried for months to claim his refund only to be refused on multiple occasions by Air Canada’s staff. Still, the company has now admitted they will comply with the ruling.
A Revolutionary Ruling
The ruling is the first of its kind and shows the world that companies can not hide behind the notion that AI has a mind of its own.
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The post Air Canada Chatbot Oversteps: Tribunal Intervenes, Orders Airline to Honor AI’s Promise first appeared on From Frugal to Free.
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