Air Canada Case: Legal Implications of genAI Misguidance

In a notable case illustrating the implications of generative AI or genAI, Air Canada has been mandated to reimburse Jake Moffatt $812, bridging the gap between the airline’s bereavement rates and the $1,630.36 spent on full-price tickets to and from Toronto, following Moffatt’s grandmother’s demise.

In a recent small claims court ruling in British Columbia, Air Canada has been directed to compensate a grieving individual who was misled by the airline’s chatbot into purchasing full-price flight tickets instead of availing bereavement rates following the death of their grandmother.

Despite Air Canada’s attempt to distance itself from the chatbot’s actions, the tribunal emphasized the airline’s responsibility for all information on its website, including that provided by interactive components like chatbots. The tribunal adjudicator deemed Air Canada’s attempt to absolve itself of responsibility for the chatbot’s actions as “remarkable,” emphasizing that the airline is accountable for all information provided on its website, irrespective of its source.

The decision underscores the importance of ensuring accuracy and transparency in AI-driven interactions, as failure to do so can result in legal ramifications for companies.