BMW dealership honors AI chatbot's mistaken buy-back offer after customer interaction

Shortly afterward, a dealership employee contacted the customer and informed him that the offer was invalid, explaining that it had been generated in error by the AI system. The dealership indicated that the vehicle's value was significantly lower than the amount quoted by the chatbot. The discrepancy arose because the AI reportedly interpreted the customer's outstanding loan balance as the amount the dealership should pay for the vehicle.

According to dealership representatives, the chatbot was designed to assist with communications and relay information rather than independently negotiate transactions. The case drew attention to broader questions surrounding AI accountability and the legal status of automated customer interactions. Legal experts note that companies may still be responsible for information and commitments communicated through AI systems acting on their behalf.

The issue echoes previous cases involving AI-powered customer service tools. In one widely discussed Canadian ruling, an airline was required to honour information provided by a chatbot after a passenger relied on inaccurate guidance regarding a fare policy.

Following media inquiries, BMW Toronto reinstated the chatbot's original offer, which the customer subsequently accepted. The dealership said it chose to honour the quoted amount and is reviewing how AI tools are used in customer communications. BMW Toronto also stated that future buy-back offers will be handled directly by human employees and that additional measures are being introduced to ensure customers are clearly informed when they are interacting with an AI system.

As organisations increasingly deploy AI-powered assistants across sales and customer service functions, incidents such as this are drawing attention to the operational, legal and reputational risks that can arise when automated systems communicate on behalf of businesses.