Key takeaways

A tribunal ruled that Air Canada was responsible for what its chatbot told a customer. It said the chatbot was part of the airline's website, so the airline answered for it.
Article 50(1) of the EU AI Act expects AI systems that talk to people to be built so users know it's AI, unless that's obvious. It applies from 2 August 2026, and the Digital Omnibus left most of it in place.
Sprout reports 69% of consumers are comfortable with brands using AI to deliver faster care. About three-quarters expect a reply within 24 hours.
The practical design is a reply ladder. Automate acknowledgements and facts from checked sources. Draft the middle for a human to send. Keep complaints, money and safety with people.
You can't automate accountability. So the policy, the source of truth and the escalation owners matter more than the model.

In February 2024, a Canadian tribunal ruled on a small case. It matters to every marketer running AI on customer channels.

Jake Moffatt asked Air Canada’s website chatbot about bereavement fares. The bot told him he could claim the discount afterwards. Another page on the airline’s own site said the opposite. Air Canada refused the refund. Then it argued the chatbot was a separate entity responsible for its own actions.

In Moffatt v. Air Canada (2024 BCCRT 149), the tribunal found the airline hadn’t taken reasonable care to keep its chatbot accurate. It held the airline liable for negligent misrepresentation and called the chatbot simply part of the website. According to the McCarthy Tétrault summary I relied on (I couldn’t open the decision itself), it said it makes no difference whether information comes from a static page or a chatbot.

A small-claims tribunal binds no other court. But I’d expect most regulators and judges to find the logic convincing. If your brand’s account says something, your brand said it.

Customers want speed, and the law wants honesty

Sprout Social reports that:

69% of consumers are comfortable with brands using AI to answer faster
about three-quarters expect a reply within 24 hours
51% of those who complain in public expect a public acknowledgement before being moved to a private message

Its page gives no sample sizes, so treat these as rough signals. The same goes for its finding that 47% of marketers plan to use AI for basic inquiries. The pressure to automate makes sense. The question is what to automate.

Europe answers part of it. From 2 August 2026, Article 50(1) of the AI Act requires providers to build AI systems that talk directly to people so those people know they’re dealing with an AI. The exception is when that’s obvious to a reasonably observant person.

The Digital Omnibus delayed the high-risk rules to December 2027 and August 2028. But according to a Jones Walker analysis, it left most transparency duties in place. Breaches sit in the tier that carries fines of up to €15 million or 3% of worldwide turnover.

The design duty falls on providers. But the brand that chose the tool is the one facing the customer. Article 50(4) also asks deployers to disclose realistic AI-made or altered images, audio and video.

I’m not a lawyer, and the EU text is the authority. My practical reading: if a bot answers customers, say so.

A reply ladder

Here’s how I’d design a social care operation. It’s my opinion, informed by the sources here.

AI answers alone only for acknowledgements and for facts that live in one approved source. Think opening hours, delivery windows, order status from the live system. If the answer isn’t there, the bot says it doesn’t know and hands over.

AI drafts and a person sends for product questions, how-to help and anything with nuance. The draft shows which source it used.

People only for complaints, refunds and compensation, safety, legal matters, the press, vulnerable customers and anyone angry. Each category gets a named owner and a response time.

Air Canada failed on the first rung. The bot contradicted the airline’s own policy page, and nothing made it check. One source of truth, plus a rule that the bot answers only from it, would have prevented it.

What does accountability look like?

Keep one maintained set of policies and facts for the bot, with a named owner. If two pages disagree, the bot will find the wrong one.

Tell people at the start that they’re talking to a bot. Log every automated answer with its source. Have someone score a random sample each week for accuracy and tone. Make sure one person can switch the bot off within a minute.

Then measure what the customer cares about. Was the problem fixed, and how fast?

A quick acknowledgement that leaves the problem untouched makes a brand look responsive and incompetent at once. A bot that closes more tickets because customers gave up is worse than no bot. So pair deflection with satisfaction on the tickets it handled, and the share that reopened.

Write the reply ladder before buying the bot. A working version of the triage workflow, with its checks, is in my AI workflows for social media teams. The same thinking applies to what you publish.

Sources

Frequently asked questions

Is a company legally responsible for what its chatbot says?

In at least one decided case, yes. A British Columbia tribunal held Air Canada liable for negligent misrepresentation after its chatbot gave wrong advice about bereavement fares. It said it made no difference whether the information came from a static page or a chatbot. It was a small-claims decision, so it isn't binding elsewhere, and other courts may differ. I'm not a lawyer, so ask yours.

Do I have to tell people they're talking to an AI?

In the EU, Article 50(1) of the AI Act requires providers to build systems that talk directly with people so users know they're dealing with AI, unless that's obvious to a reasonably well-informed person. It applies from 2 August 2026. The duty sits with the system's provider. I'd tell customers anyway, because it's honest and it's the safer position.

How fast do customers expect a reply on social?

Sprout's 2025 Index reports about three-quarters of consumers expect a reply within 24 hours or sooner. A Q4 2025 Sprout survey found 51% of those who reach out publicly expect a public acknowledgement before moving to a direct message. Sprout doesn't give sample sizes on its statistics page, so I treat these as rough signals.

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