Air Canada was mandated to reimburse a passenger who was mistakenly assured a discounted bereavement fare by the airline’s AI chatbot — a potentially groundbreaking ruling as more companies embrace artificial intelligence for customer service.
Jack Moffat, a resident of Vancouver, inquired with the airline’s support chatbot about bereavement rates following his grandmother’s passing in November 2022.
The chatbot replied by informing the grieving grandson that he could avail of the reduced price within 90 days after flying by submitting a claim.
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Nevertheless, the airline’s actual bereavement policy does not involve a post-flight refund and stipulates that all discounts must receive prior approval.
Moffatt proceeded to book a roundtrip flight to Toronto for the funeral costing approximately $1,200. However, upon requesting a refund from Air Canada, he was informed that he did not qualify, as per the court documents.
He made several attempts by sending multiple emails along with the chatbot conversation screenshots to Air Canada in a bid to recover the funds, as per the complaint.
On February 8, 2023, an Air Canada representative notified him that the chatbot had provided “misleading information” and that the company’s bereavement policy did not allow for retroactive discounts.
The disgruntled passenger then took legal action against the airline, which argued in court that the chatbot was a “separate legal entity” and thus accountable for its actions.
Recently, a Canadian tribunal ruled in favor of Moffatt and directed Air Canada to issue a refund of approximately $600.
Christopher Rivers, a member of the civil resolution tribunal in British Columbia, remarked, “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.”
“I find Air Canada did not take reasonable care to ensure its chatbot was accurate,” Rivers added. “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.”
As of Monday, the chatbot, launched the previous year, was not accessible on Air Canada’s website.
Air Canada was contacted by the Post for a response.
