In a cautionary tale for global airlines implementing AI in customer service systems, Air Canada faced a setback in a small claims court case against a passenger grieving a loss. The airline attempted to distance itself from its AI-powered chatbot but failed in its endeavor.
The passenger alleged being misled regarding Air Canada’s bereavement fares policy by the chatbot, which provided inaccurate information. The small claims court in Canada ruled in favor of the passenger, awarding them $812.02 in damages and court fees.
Following the death of their grandmother, the passenger interacted with Air Canada’s chatbot on the website seeking information on flights. The chatbot suggested the possibility of retroactively applying for bereavement fares. The pivotal point of contention was the chatbot’s statement, which included a hyperlink to the airline’s Bereavement Fares Policy page. This page contradicted the chatbot by stating that refunds were not allowed for completed travel.
Air Canada contended that the passenger had the opportunity to verify the chatbot’s response through the provided link. However, the court found Air Canada negligent in failing to justify why the passenger should trust the chatbot’s information over its official website content.
The Tribunal classified Air Canada’s actions as “negligent misrepresentation,” emphasizing the airline’s responsibility for all information on its website, including that generated by the chatbot. The ruling highlighted Air Canada’s lack of diligence in ensuring the chatbot’s accuracy and transparency in differentiating between various sources of information on its website.
This incident raises questions about the extensive integration of AI by Air Canada, particularly in customer service operations. While AI offers efficiency benefits, the case underscored the importance of maintaining accuracy and accountability in AI-driven interactions with customers.
As airlines increasingly rely on AI for customer interactions, the risk of AI-generated errors or “hallucinations” becomes a critical consideration. These inaccuracies can have repercussions on consumer trust and legal liabilities. Regulatory bodies like the U.S. Consumer Financial Protection Bureau caution against the negative outcomes and legal risks associated with AI technologies in customer-facing services.
While AI tools like chatbots can enhance customer service, their limitations in handling complex queries and potential for misinformation necessitate a balanced approach in their deployment. Airlines must weigh the benefits of AI-driven solutions against the risks of customer harm and legal implications to ensure a seamless and trustworthy customer experience.
