In 2024, Air Canada was ordered by Canada’s Civil Resolution Tribunal to compensate a customer after its support chatbot falsely stated that a bereavement discount could be requested retroactively within 90 days of ticket issuance. The airline’s actual policy did not permit customers to claim the fare after booking, and the chatbot provided materially incorrect instructions during a customer-service interaction.
Air Canada argued that the chatbot was a separate legal entity whose statements should not bind the airline. The tribunal rejected that defense and required Air Canada to honor the representation and pay damages. The ruling established that deploying an automated conversational system does not allow a company to evade responsibility for inaccurate commercial information supplied to customers, making the case an early legal warning about unsupervised generative AI in customer service.