Human vs. Machine: The Air Canada Chatbot Lawsuit and Its Implications for AI in Customer Service

Abstract

Over the past decade, service industries have adopted AI chatbots to improve customer service, but reliability concerns remain. In 2022, Air Canada’s chatbot incorrectly promised Jake Moffatt a bereavement fare refund, which was later denied, leading to a court case. The British Columbia Civil Resolution Tribunal ruled Air Canada liable, ordering compensation to Moffatt. This case highlights that companies are responsible for information provided by their chatbots and must ensure accuracy. While chatbots handle basic inquiries well, their effectiveness drops with complex issues. Travellers are advised to consult human agents for nuanced or sensitive matters until chatbot reliability improves.