AI chatbots and corporate liability: A South African perspective

Erwyn Durman, partner; Manno Manavhela, associate; and Precious Maphupha, candidate attorney at Webber WentzelWith the growing use of artificial intelligence 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 was addressed in Moffatt v Air Canada, a case concerning a refund for a bereavement fare. Although decided by a Canadian small-claims tribunal in 2024 and not binding in South Africa, Moffatt is instructive. As AI-driven customer service tools become commonplace, its reasoning on when a company must answer for its chatbot’s…