AI incident
Air Canada chatbot gave a false refund policy
Air Canada · 2024
Organisation
Air Canada
Year
2024
Failure mode
Hallucination
Severity
major
Agentic
Yes — an AI system acting, not just advising
Source
Moffatt v. Air Canada (BCCRT)
What happened
A support chatbot invented a bereavement-refund policy; a tribunal held the airline liable for what its AI told a customer.
What would have prevented it
Ground answers in approved sources (RAG) + human oversight on policy claims
Requirements this maps to
Editorial cross-reference from our prevention note — it is not a finding that any law was breached.