BET THE COMPANY · C1 · 50 min

The Chatbot That Made a Promise

An airline's website chatbot told a grieving passenger something that was not true. The airline said the chatbot was not its problem. A tribunal disagreed.

All the cases

Today: you'll follow a short legal case about a chatbot's mistake, learn four questions to ask before any AI tool speaks to a customer for you, and practise explaining your answers out loud.
Before we start — talk these through:
  • Have you ever followed advice from a website chat window and then found out it was wrong? What did you do?
  • If a tool you use says something to a client in your name, whose words are they?
  • Who should pay when a company's automatic system makes a promise that the company never meant to keep?

The vocabulary of this story

Ten items. Say your answer out loud before you reveal it.

A · What do they mean here? Work it out from the context

Read the sentence, guess the meaning of the word in bold, then reveal.

The airline offers bereavement fares to people who need to travel to a family funeral.
bereavement — the period of grief after someone close to you has died. A bereavement fare is a reduced price for this kind of travel.
The rule was not retroactive: it did not apply to tickets that had already been bought.
retroactive — taking effect from a date in the past, not only from now.
The tribunal decided that the airline was liable for what its own website said.
liable — legally responsible, and so required to pay if something goes wrong. The noun is liability.
She asked the tribunal for compensation for the difference between the two prices.
compensation — money paid to someone to make up for a loss or an injury.

B · Which term means…?

Three terms: take reasonable care · set a precedent · pass the buck. Say the right one, then reveal.

Which term means to blame someone else for a problem that you should deal with yourself?
pass the buck — The airline tried to pass the buck to its own chatbot.
Which term means to do what a sensible person would do in order to avoid error or harm?
take reasonable care — a legal phrase. The tribunal said the airline had not taken reasonable care to make sure the chatbot was accurate.
Which term means to be the first decision of its kind, so that later cases follow it?
set a precedent — The ruling set a precedent for AI mistakes. Noun: a precedent.

C · Which word completes all three phrases?

One missing word fits every phrase in the group. Say it, then reveal.

make a ___  ·  break a ___  ·  keep your ___
promise — a statement that you will definitely do something, which another person then relies on.
reach a ___  ·  overturn a ___  ·  a binding ___
ruling (or decision) — an official judgment about a dispute, given by a court or tribunal.
a legal ___  ·  dismiss the ___  ·  a small-___ court
claim — a request for something that you believe you have a right to, such as money.

Now use them — out loud

Before we read:
  • When did a company last make you a promise that it did not keep? What did you do?
  • Which of your own working rules should never be left to an automatic answer?
  • If you had to take reasonable care with an AI tool at work, what would that actually mean on a Monday morning?

The story, in three parts

Read each part. After it, answer the quick check from memory, then discuss one question.

Part 1 — A question at a bad time

In November 2022 a man named Jake Moffatt needed to fly from Vancouver to Toronto because his grandmother had died. Before booking, he went to the Air Canada website and asked the chat window about bereavement fares, the reduced prices some airlines offer for funeral travel.

The chatbot told him that he could buy a ticket at the normal price and apply for the bereavement rate afterwards, within ninety days. He took that at face value. He paid roughly sixteen hundred Canadian dollars for the return trip, flew, and then sent in his claim.

Air Canada said no. A different page on the same website said that bereavement fares could not be claimed after travel. The reduced fare would have cost about nine hundred and fifty dollars, so the gap was not small.

Quick check — from memory, then reveal:

1. Why did Moffatt use the chat window?

2. What did the chatbot tell him he could do?

3. Why did Air Canada refuse his claim?

1. He wanted to ask about reduced bereavement fares before booking a flight to his grandmother's funeral.

2. Buy the ticket at the normal price and claim the bereavement rate afterwards, within ninety days.

3. Another page on its own website said that bereavement fares could not be claimed after the flight.

Discuss:
  • Moffatt believed the chatbot. Would you have checked it against another page? What would have made you check?

Part 2 — "The chatbot is responsible for itself"

Moffatt wrote to the airline for weeks. It offered him a small voucher and stayed with its position. He took the case to British Columbia's Civil Resolution Tribunal, which hears small claims, and which is a kind of court you can use without paying for a lawyer.

Air Canada's defence was unusual. It argued that it could not be held responsible for information given by its chatbot, and in effect it described the bot as a separate thing that answered for its own words. The tribunal member, Christopher Rivers, did not accept it. He wrote that it should be obvious to the airline that it was responsible for all the information on its website, and that it made no difference whether that information came from a static page or from a chatbot.

He also found that Air Canada had not taken reasonable care to make sure the chatbot was accurate.

Quick check — from memory, then reveal:

1. Where did Moffatt take his case?

2. What was Air Canada's argument?

3. What did the tribunal member say about static pages and chatbots?

1. To British Columbia's Civil Resolution Tribunal, a small-claims body.

2. That it was not responsible for what its chatbot said, as if the bot answered for itself.

3. That it made no difference: the airline was responsible for all the information on its website, wherever it came from.

Discuss:
  • Why do you think Air Canada chose that argument, when a simple apology might have cost less?

Part 3 — A small amount of money, a large lesson

In February 2024 the tribunal ordered the airline to pay Moffatt about eight hundred Canadian dollars in total, which included damages, interest and fees. Air Canada said it would comply. Journalists reported slightly different figures for the split, so the exact breakdown is worth checking in the decision itself. The overall size was never the point.

The ruling came from a small-claims tribunal and is not binding on higher courts, so it did not become law. But many companies took notice. It was one of the first public decisions that put a simple question to a business: if you let software speak to your customers, do you stand behind what it says?

The answer in this case was yes, and it did not depend on how clever the software was. It depended on the fact that the customer could not tell the difference between the chatbot and the company, and had no reason to try.

Quick check — from memory, then reveal:

1. About how much did the tribunal order Air Canada to pay?

2. Why is the ruling not binding on higher courts?

3. What question did the case put to businesses?

1. About eight hundred Canadian dollars in total, including damages, interest and fees.

2. It came from a small-claims tribunal, not from a higher court.

3. If software speaks to your customers, do you stand behind what it says?

Discuss:
  • The amount was small. Do you think a small case can still change how companies behave? Can you think of another example?

How the tool works

Before you let an AI tool speak to a customer, a client or a candidate in your name, ask four questions, and ask them in a loop each time you change anything about how it works: who is speaking, what can it promise, who pays if it is wrong, and how will you find out. Together they are the Customer Test.

Whospeaks?What canit promise?Who paysif wrong?How willyou know?

Using it, step by step

  1. Who is speaking? To the person reading, there is only one voice: yours. Say that out loud when you decide whether a tool is ready. As far as the customer is concerned, this is us.
  2. What can it promise? List the things a customer could take as a commitment: a price, a date, a refund, a result. Then decide which of these the tool must never state by itself. It can explain the policy. It cannot grant an exception.
  3. Who pays if it is wrong? Work out the cost before it happens. If it gets this wrong, we pay the difference. If the answer is "we cannot afford that", the tool should hand over to a person at that point.
  4. How will you know? Pick a way to catch mistakes early: try the tool yourself with awkward questions, read a sample of its conversations every week, and give customers an easy way to say that something was wrong.

Try it yourself

Each line is something a company could say about its AI tool. Is it taking responsibility, passing the buck, making a promise it may not be able to keep, or setting a sensible limit? Choose, then check.

1. Our assistant answers questions about opening hours, and for refunds it passes you to a person.
2. The chatbot is a separate tool, so we cannot be held to what it says.
3. Ask our assistant anything and it will guarantee the best price.
4. The answer you were given was wrong. We will honour it and we are fixing the tool.
5. Please read all our policy pages to check anything the assistant says.
6. It will tell you what is likely to happen, and it will never promise a date.
7. Our tool can approve refunds on the spot, whatever the situation.
8. That was our mistake, not the customer's, and we will pay the difference.

1. Sensible limit — it says what the tool does and where a human takes over. Nobody is surprised later.

2. Passes the buck — this is, in essence, the argument that failed. The customer cannot tell the tool from the company.

3. Risky promise — a guarantee is a promise. If the tool is wrong even once, the company owes it.

4. Takes responsibility — it accepts the cost and describes the change. It costs less than a tribunal.

5. Passes the buck — the whole point of a chat window is that customers should not have to do that.

6. Sensible limit — a clear rule about what the tool must not commit to.

7. Risky promise — it hands over a commitment the company has not thought through.

8. Takes responsibility — plain, first person, and it names a result.

Where the tool breaks

It is not only chatbots. A drafting tool that writes an email to a client in your name is speaking for you in exactly the same way. Read it before it goes.

A disclaimer helps, but only a little. A line saying that the assistant may make mistakes is honest. It does not make you less responsible for a price it quoted.

Small firms can set limits more easily. With one or two clients you can keep the tool away from anything that sounds like a commitment, and add a human at those points. It costs a few minutes.

Talk it through:
  • Which of the four questions would be hardest for a small consultancy to answer honestly?
  • Is it ever acceptable to say, "The tool made the mistake, so we are not responsible"?

Its cousins

The Report With Invented SourcesA consultancy and an AI tool that invented footnotes, and the four-move account that follows. Open the lesson →
Bet the Company: all the casesReal business decisions, told as stories, with a language tool in each. Open the lesson →
English at WorkSpeaking role plays for high-stakes moments at work. Open the lesson →
Begin With the EndThree C1 lessons on answering clearly and holding your position. Open the lesson →

Language — Reporting what someone said or ruled

Legal and business stories depend on reporting verbs. Each one says something different about how strongly the person spoke, and about whether you agree with them.

Neutral reporting: The chatbot told him that he could claim afterwards. The airline said that the rule was not retroactive. Note tell + person + that, but say that without a person.
Stronger or more specific verbs: argue, claim, insist, rule, find, state, point out. The airline argued that it was not responsible. The tribunal ruled that it was. He pointed out that the page said otherwise. Claim often suggests that you are not sure it is true.
Reporting verb + structure: The airline denied being responsible. (denied + -ing) The tribunal found the airline to be at fault. The company agreed to pay. (agreed + to) Learn each verb with the structure that follows it.

1. Choose the verb

Complete each sentence with the best verb from the box. Use each once: ruled · claimed · pointed out · agreed.

1. The tribunal that the airline had not taken reasonable care.

2. The airline that it could not be held responsible for the chatbot.

3. Moffatt that another page of the website said something different.

4. In the end the airline to pay the money it was ordered to pay.

1. ruled — an official decision

2. claimed — a position the writer may not accept

3. pointed out — drew attention to a fact

4. agreed — agreed + to-infinitive

2. Report it

Report each sentence using the verb in brackets and the correct structure.

1. "I did not know about the other page." (Moffatt said...)

2. "You can claim the reduced fare afterwards." (The chatbot told him...)

3. "We will pay." (The airline agreed...)

4. "We did not mislead him." (The airline denied...)

1. Moffatt said that he had not known about the other page. (back-shift to past perfect)

2. The chatbot told him that he could claim the reduced fare afterwards.

3. The airline agreed to pay.

4. The airline denied misleading him. (denied + -ing)

Now report a disagreement from your own work in four sentences, using at least three different reporting verbs.

Speak

Three conversations about AI and responsibility. Read the situation, take a moment, and speak. Aim for about a minute each.

Useful language: “As far as the customer is concerned…” · “It can explain, but it cannot commit.” · “If it gets this wrong, we pay.” · “I would hand over to a person at that point.” · “The tribunal ruled that…”
Time remaining: 4:00
Task 1 — Tell the story

Retell the Air Canada case in about a minute to a colleague who has never heard of it. Include what the chatbot said, what the airline argued and what the tribunal decided. Use at least two reporting verbs.

Task 2 — The Customer Test

A client asks you to put an AI assistant on their website to answer enquiries from customers. You are cautious. Take them through the four questions of the Customer Test, using their business as the example, and say where you would want a person to take over.

Task 3 — Argue the other side

Take Air Canada's side for one minute. Make the strongest honest case that a company should not be held to everything its chatbot says. Then, in thirty seconds, say why you still do not agree with it.

To finish — the harder questions

  1. If a chatbot gives a customer wrong information, is the company's real fault the error or the lack of checking? Does it matter which?
  2. The amount at stake was small. At what size of risk would you stop using an automatic tool for customer questions?
  3. Where is the line between a tool that explains and a tool that commits?
  4. From memory: retell the case in four sentences, using liable, take reasonable care and set a precedent.