Dealership revoked offer to buy back customer’s BMW, blaming wayward AI chatbot

Source Domain: www.cbc.ca

Zack Giacomelli attempted to sell his 2021 BMW, purchased from BMW Toronto in 2023, back to the dealership.
An AI chatbot named Quinn made a buy-back offer for $27,162.79 through text, appealing to Giacomelli because it covered his remaining car payment.
After receiving the initial offer, the dealership unexpectedly revoked it and informed Giacomelli that Quinn was actually an AI and not a real person, leading to his shock and disappointment.
The dealership later offered a much lower buy-back price of around $20,000, causing Giacomelli to feel devastated and arguing that companies should honor their AI’s decisions.
There is a growing concern regarding how businesses, including Canadian ones, adopt AI tools and manage the potential for customer backlash or legal action arising from AI errors, similar to Air Canada’s case where they had to honor a fare rebate given by a chatbot.
A legal perspective from Tanya Walker, a litigation lawyer, underscores that AI chatbots can hold a company liable if errors are made, akin to human employee actions.
Although Giacomelli didn’t formally accept Quinn’s initial offer, he set up a physical meeting with the dealership to finalize the deal, potentially arguing there was a binding contract.

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