In a landmark case that questioned the reliability of AI-driven customer service, Air Canada has been ordered to pay compensation to a passenger, Jake Moffatt, who was misled by the airline’s chatbot regarding its bereavement travel policy.
The incident unfolded when Moffatt sought guidance from Air Canada’s website on the airline’s bereavement rates after the death of his grandmother in 2022. The chatbot told Moffatt that he could apply for a refund within 90 days of the ticket being issued, provided inaccurate information, prompting Moffatt to book a flight immediately and attempt a refund within 90 days—an option that, in reality, did not exist.
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