Course: AI Governance & Policy Frameworks Pathway: Governance (Paid) Level: Advanced Estimated Reading Time: 8 minutes
In March 2024, Air Canada was held liable after its chatbot gave a customer incorrect information about bereavement fares. The airline argued the chatbot was a "separate legal entity" responsible for its own actions. The tribunal disagreed. Air Canada was responsible for all information on its website, whether provided by a human or an AI.
This case illustrates a principle that every senior leader needs to understand: deploying AI does not transfer accountability. It transfers capability. The accountability stays with you.
Most organisations have a clear chain of accountability for human decisions. If a loan officer denies someone credit, there's a person who made that call, a manager who oversees them, a policy that guided the decision, and a complaints process for the customer.
Now replace the loan officer with an AI model. The decision is faster, cheaper, and possibly more consistent. But who made it?
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