In a recent decision of the
The chatbot provided the customer with incorrect information relating to
Facts
On
A chatbot is an automated system that provides information to a person using a website in response to that person's prompts and inputs.
The chatbot was wrong.
Upon submitting his tickets for a reduced bereavement rate,
Is a Chatbot a Separate Legal Entity?
Air Canada Found Liable for Negligent Misrepresentation
Due to the commercial relationship between
Implications for Artificial Intelligence Tools
It is not clear from the Tribunal's decision whether the
Still, the decision carries important implications for all types of chatbots, including those powered by artificial intelligence and large language models. The main takeaway? Companies can be held liable for anything their chatbot says.
Accordingly, companies should assess what type of chatbot is appropriate for their platform and consider whether a simple rule-based chatbot is a safer option. Companies should develop disclaimers and notices where chatbots are deployed informing users of the risks of hallucinations or inaccuracies (keeping in mind that this may not fully insulate the company from risk). Finally, if a company does intend to use an AI chatbot, it should test the chatbot carefully before implementation to reduce the chances of hallucinations, inaccuracies, or other issues arising.
Takeaways
-
This decision provides insight into what a court may deem to be a reasonable position to take in a dispute involving the dissemination of misinformation.
- Like the utterances of their employees and agents, companies may be presumptively responsible for the output of their chatbots.
- This decision also shows that a judicial body will be reluctant to rule that technology can be "responsible" for misinformation and allow a company to escape liability on that basis.
- Companies that implement a chatbot, or a similar customer-facing tool, on its website should keep the tool as simple as possible for the required purposes, use disclaimers, and test the system rigorously before implementation.
- If your company is involved in a case involving chatbots or artificial intelligence tools, strongly consider settling out of court. While the claim was for relatively nominal damages (
$812.02 ), the resulting decision has already made international news.1
Footnote
1. See articles recently published about the incident by
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
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