DocumentedAI Hallucination / Misinformation2022-11 (incident); 2024-02-14 (ruling)Canada

Moffatt v. Air Canada AI Chatbot Hallucination

After his grandmother's death, Jake Moffatt used Air Canada's website chatbot which fabricated a policy allowing retroactive bereavement fares within 90 days. He bought full-fare tickets based on the bot's advice. Air Canada refused the refund, claiming in BC Civil Resolution Tribunal that the chatbot was 'a separate legal entity responsible for its own actions.'

Damages: CA$812AI system:Air Canada website chatbot

Impact

Tribunal rejected this argument. Member Rivers: 'While a chatbot has an interactive component, it is still just a part of Air Canada's website.'

Outcome

First major legal precedent that companies are liable for false outputs of their AI chatbots. Cited internationally. Air Canada removed the chatbot.

Sources

  1. Source 1CBC Newswww.cbc.ca/news/canada/british-columbia/air-canada-chatbot-lawsuit-1.7116416
  2. Source 2American Bar Associationwww.americanbar.org/groups/business_law/resources/business-law-today/2024-february/bc-tribunal-confirms-companies-remain-liable-information-provided-ai-chatbot/
  3. Source 3McCarthy Tétraultwww.mccarthy.ca/en/insights/blogs/techlex/moffatt-v-air-canada-misrepresentation-ai-chatbot

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