Air Canada has been ordered to pay a passenger $812.02 (£642.64) in damages and tribunal fees after its chatbot provided incorrect information about bereavement fares. The British Columbia Civil Resolution Tribunal ruled that the airline is liable for the actions of its AI-powered chatbot, rejecting the airline's argument that the chatbot was a 'separate legal entity'.
The case dates back to 2022, when passenger Jake Moffatt was told by Air Canada's chatbot that he could book a full-fare flight for his grandmother's funeral and then apply for a bereavement discount retrospectively. When Moffatt later applied for the discount, the airline refused, stating that the chatbot had been wrong and that the request needed to be submitted before the flight.
Tribunal member Christopher Rivers wrote in his decision: '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.' The ruling is considered a landmark case for AI liability in the travel industry.
Gabor Lukacs, president of the Air Passenger Rights consumer advocacy group, said: 'It establishes a common sense principle: If you are handing over part of your business to AI, you are responsible for what it does. What this decision confirms is that airlines cannot hide behind chatbots.'
Aviation expert Marisa Garcia advised passengers to be cautious when relying on chatbot information, but stressed that the onus is on airlines to ensure accuracy. 'Airlines will need to refine these tools further and make them far more reliable if they intend for them to ease the workload on human staff or ultimately replace human staff,' she said.
