Case studyModerateProduction incidentRogue action

Air Canada's website chatbot invented a bereavement-fare refund policy that a tribunal made the airline honor

Air Canada·Air Canada website AI chatbot

The chatbot told a customer, Jake Moffatt, that he could apply for a bereavement discount retroactively after booking, contradicting the airline's actual policy; when he later filed for the promised partial refund, Air Canada refused, arguing the chatbot was a 'separate legal entity.'

Blast radius
The British Columbia Civil Resolution Tribunal found Air Canada liable for negligent misrepresentation and ordered it to pay the promised refund and damages to the customer.
Root cause
A customer-facing chatbot was allowed to generate policy statements with no verification against the airline's actual, static policy pages, and the company had no process to reconcile the two.
How it was caught
Not caught until the customer's refund was denied and he escalated to the tribunal months later.
What changed
The tribunal ruling establishes that companies remain liable for information their AI chatbots provide, prompting broader legal-compliance reviews of chatbot deployments; no specific technical fix from Air Canada reported.

Take-awayA customer-facing agent's factual claims need the same accuracy guarantees as your official policy pages, because courts will hold you to both equally.