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AI chatbots and corporate liability – who takes responsibility?

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With the growing use of Artificial Intelligence (AI) and its integration into corporate systems, a key question arises: can a company be held responsible for misleading statements made by its AI chatbot to a customer? This issue arose in Moffatt vs Air Canada, a case concerning a refund for a bereavement fare. Although a Canadian small-claims tribunal decided the case in 2024, its ruling does not bind South African courts.

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