As Canadian businesses rush to adopt artificial intelligence tools, they face a growing risk of customer backlash — even legal action — if those tools make mistakes.

Canadian law has already established that companies can be held liable if AI chatbots dole out bad information. In a 2024 case, Air Canada was forced to honour a fare rebate after its chatbot provided a passenger with incorrect advice about bereavement fares.

The airline argued before the British Columbia Civil Resolution Tribunal that the chatbot was "a separate legal entity that is responsible for its own actions." But the tribunal disagreed, stating that Air Canada was ultimately responsible.

"Just like an employee may do something wrong and the company's held responsible, a bot is just like an employee," said Tanya Walker, a litigation lawyer with Walker Law in Toronto.

"I don't think companies really realize the magnitude and the power that a bot can have," she said. "It can enter into a contract on your behalf."

[–] ikidd@lemmy.dbzer0.com 25 points 3 days ago (1 children)

The airline argued before the British Columbia Civil Resolution Tribunal that the chatbot was “a separate legal entity that is responsible for its own actions.”

That had to be a complete hail mary legal tactic, they couldn't have possibly thought that was going to fly. As the article says, even a human employee making a mistake doesn't get them out of liability.

[–] ValueSubtracted@startrek.website 16 points 3 days ago

It was worth a shot (from the perspective of an evil, soul-sucking corporation) - had it gone their way, it would have been one hell of a legal precedent.