In The Computer & Internet Lawyer, Partner Matthew Richardson Highlights Rogue AI Chatbots

In an article published in the June issue of The Computer & Internet Lawyer, partner Matthew Richardson provides insights on what to do when AI-powered chatbots provide misinformation.

The article, entitled “When Chatbots Go Rogue: Lessons for Businesses,” noted that these digital helpers have become “an indispensable companion” in the travel business, and revolutionized customer interactions, from booking flights to answering queries. But Richardson pointed to one recent misadventure involving Air Canada’s chatbot to help businesses navigating the artificial intelligence frontier.

Grieving grandson Jake Moffatt used Air Canada’s chatbot to book a last-minute flight for his grandmother’s funeral, which promised him he can secure a bereavement fare after he books the full-fare flight. He later found that the discount didn’t exist and that the chatbot is a “separate legal entity” that is responsible for its own actions.

The British Columbia Civil Resolution Tribunal did not buy Air Canada’s argument, instead, ruling in favor of the passenger, ordering the airline to pay Moffatt damages and fees, Richardson wrote. The tribunal’s decision sends a clear message, according to Richardson.

“Companies cannot hide behind their chatbots,” Richardson wrote. “If you are handing over part of your business to AI, you are accountable for its deeds. Gabor Lukacs, president of the Air Passenger Rights consumer advocacy group, calls this case a landmark. It sets a precedent for airlines and travel companies relying on AI. Yes, companies are liable for what their tech says and does. The principle is straightforward: If you unleash AI, you shoulder the consequences.”

When it comes to AI and chatbots, Richardson concluded that transparency is nonnegotiable, human oversight remains crucial, businesses need to understand the legal responsibility and customer trust can be easily eroded by a misguided chatbot.

“As businesses embrace AI, they must remember: Chatbots are not just lines of code; they are ambassadors of your brand,” Richardson wrote. “So, if you are thinking of implementing a chatbot to interact with customers, remember Moffatt’s saga. Behind the digital façade lies a world of responsibility.”

Read the full article here.