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Home Technology

Airline Liable for Discounts Mentioned by AI Chatbot

mikegibb by mikegibb
February 20, 2024
in Technology
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Let’s pause our deepening love affair with technology and artificial intelligence for a cautionary tale that everyone in the accounts receivable management industry should be paying attention to, especially if you have an automated chatbot on your site or ever plan to. Air Canada has been ordered to pay a customer a partial refund that the airline’s artificial intelligence-driven chatbot said the customer was entitled to, even though the airline’s policies said otherwise.

The Background: The customer asked the chatbot whether the airline offered bereavement fares to help him purchase a ticket following the death of his grandmother. The chatbot told the customer that bereavement fares were offered and the customer had up to 90 days after flying to file a claim for the discount. The problem is that the airline’s policy states that claims must be filed and approved before the flight takes place.

  • The customer booked a cross-country flight for $1,200 and later requested the promised discount of about 50% off the total, but was told by the airline’s staff that the discount was not available, that the chatbot was incorrect, and that its replied were non-binding.

The Ruling: The chatbot is part of the airline’s website, a tribunal ruled, and the airline is ultimately responsible for everything that goes on its website.

  • The tribunal ordered the airline to pay the customer $483 plus fees.
  • Air Canada has taken down the chatbot from its website.

The Last Word:

“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,” the tribunal wrote.

Related

Tags: Artificial IntelligenceChatbot
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Daily Digest – February 20. Suit Accuses Collector of Attempting to Collect From Represented Consumer Who Previously Sued Over Same Debts; Airline Liable for Discounts Mentioned by AI Chatbot

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Daily Digest - February 20. Suit Accuses Collector of Attempting to Collect From Represented Consumer Who Previously Sued Over Same Debts; Airline Liable for Discounts Mentioned by AI Chatbot

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