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L4 · Agents in marketing operations7 min read

Customer-facing AI: chatbots, brand assistants and liability

Brands increasingly put AI in front of customers: shopping assistants, website chatbots, social reply agents and "brand concierges". Marketing often owns the experience — and the brand risk.

You are responsible for what your bot says

In February 2024, British Columbia's Civil Resolution Tribunal decided Moffatt v. Air Canada. The airline's website chatbot had told a customer he could apply for a bereavement fare after travelling; the actual policy said otherwise. Air Canada argued the chatbot was responsible for its own statements. The tribunal rejected that, holding that the chatbot was part of Air Canada's website and the company was responsible for all information on it. Air Canada was ordered to pay the customer damages.

What can go wrong

  • Wrong facts: prices, policies, availability, eligibility.
  • Off-brand tone: jokes, slang or arguments that go viral for the wrong reasons.
  • Promises: discounts, refunds or commitments the business didn't make.
  • Manipulation: users trying to make the bot say harmful or embarrassing things.
  • Disclosure: customers may need to be told they are talking to an AI (for example under the EU AI Act's transparency rules for systems that interact with people).

Guardrails that work

  • Ground answers in approved, current sources (policies, product data), and say "I don't know" otherwise.
  • Limit scope: what topics it handles, and what goes to a human.
  • Block promises the bot can't make (refunds, legal or medical advice).
  • Red-team before launch: try to break it, including with hostile prompts.
  • Monitor and log conversations; review samples weekly; keep a fast way to switch it off.
  • Easy handoff to a human.

What this means for the CMO

If a bot carries your logo, its words are your words. Before launch, agree with legal and customer service who owns the bot's knowledge, who reviews its conversations and who can switch it off.

Ask for a red-team report and a weekly sample review for the first three months. Measure resolution and satisfaction, not just "deflection".

Decide in advance what the bot must never do — promise refunds, give legal or medical advice, comment on competitors — and test those limits before every major update. Customers judge the brand by its worst conversation, not its average one.

Real example

In Moffatt v. Air Canada (February 2024), British Columbia's Civil Resolution Tribunal held Air Canada responsible for its website chatbot's incorrect advice about bereavement fares, rejecting the argument that the chatbot was responsible for its own statements. Source: American Bar Association, Business Law Today — BC Tribunal confirms companies remain liable for information provided by AI chatbot (Feb 2024) ↗

Use it

Quick check · 3 questions

  1. 1.In Moffatt v. Air Canada, who was held responsible for the chatbot's wrong advice?

  2. 2.Which guardrail reduces wrong answers most?

  3. 3.What should you measure for a customer-facing bot?

0 of 3 answered

Sources

Last reviewed 2026-10-01.