Air Canada was forced to pay compensation after the airline's chatbot misinformed a customer in a conversation about loss rates.

The chatbot recommended that passenger Jake Moffat book a ticket and then submit application for a ticket refund to receive compensation due to the loss, reports simpleflying.com.

According to theguardian.com, the chatbot assured Moffat that he would be refunded the amount of the fare due to the loss .

When the passenger contacted the airline, the carrier stated that it had a different policy and offered a $200 voucher for future travel. Moffat refused the voucher and filed a small claims complaint with the British Columbia Civil Claims Tribunal.

The advice provided by the chatbot was found to be inaccurate and inconsistent with Air Canada's current policies as provided on the same website -website. The policy is that passengers can request lost fare refunds by telephone for upcoming flights that have not yet taken place.

The court sided with Moffat and ruled that Air Canada must refund the money as described chatbot. In addition, the carrier had to pay damages and legal costs.

In court, Air Canada denied responsibility for the information provided, stating that the chatbot was a separate legal entity, explained Tribunal member Christopher Rivers. He also argued that the customer should never have trusted the chatbot and should have double-checked the information on the website.

However, many industry experts believe the carrier should have immediately admitted the error and provided a partial refund expected by the passenger, especially because the artificial intelligence chatbot provided on the carrier's website as part of customer service provided incorrect information.

This case sets a precedent for future cases involving mistakes made by AI functions.

Source: travelnews.co.za

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