Rapid and growing adoption of artificial intelligence (AI) technologies has brought with it added consumer complexities in the marketplace.
In a recent case involving a Canadian airline, the company’s AI-powered chatbot misrepresented the company’s bereavement policy to a customer. The customer relied on the incorrect chatbot information to his financial detriment. The airline refused to honor the representations made by its AI-chatbot, and the customer was forced to sue for damages. The airline’s argument that it should not be held liable because the chatbot is a separate legal entity was ultimately rejected in small claims court.
To protect consumers in our Commonwealth from such disputes with companies making use of AI technology, I plan to introduce legislation clarifying that business entities are liable for representations made by artificial intelligence to consumers, via chatbots or other technologies, when utilized as a tool by the company to avoid human interaction.
There can be no question that emerging technologies should be deployed to manage consumer concerns, complaints and questions. Businesses, however, must acknowledge that they are bound by the information provided by these technologies. Please join me in co-sponsoring this important piece of legislation.

Statutes/Laws affected:
Printer's No. 3103: P.L.1224, No.387