Is Improperly Managed AI on Your Website Your Next Business Risk?
Blog post description.
Bob McTaggart edited with ai
7/28/20263 min read
Is Improperly Managed AI on Your Website Your Next Business Risk?
Why customer-facing chatbots are creating new responsibilities for businesses in Canada, the United States, and around the world
Artificial intelligence has moved from a future concept into everyday business.
Today, a customer visiting a company website may not know whether they are speaking with an employee or an AI assistant.
They simply know they are interacting with the business.
That distinction matters.
Over the past several years, companies have rapidly adopted website chatbots because they offer real advantages:
Faster customer response
24-hour availability
Reduced repetitive workload
Better access to information
These are valuable tools.
But every important business tool also creates responsibility.
The question businesses should now ask is:
Are we managing our AI, or are we simply deploying it and hoping everything works?
AI Liability Is Becoming a Business Issue
One of the biggest misconceptions about artificial intelligence is:
"The AI gave the answer, not us."
That may not be enough.
When a customer interacts with your website chatbot, they generally do not see a separate technology provider.
They see your company.
They see your brand.
They see your responsibility.
A chatbot may be automated, but the customer relationship is still human.
The Air Canada Lesson
One important early example is the Air Canada chatbot case.
A customer used Air Canada's website chatbot and received incorrect information regarding a bereavement travel policy.
Air Canada argued that the chatbot was separate from the company.
The tribunal did not accept that argument.
The broader lesson was important:
Businesses cannot assume that automation removes responsibility for customer communications.
If an AI system represents your business to customers, organizations should consider how they manage that interaction.
California, New York, Canada, and Europe Are Sending Similar Signals
Different jurisdictions are approaching artificial intelligence in different ways.
However, a common theme is emerging:
Organizations need to understand, manage, and communicate how they use AI.
California
California has been one of the early leaders in AI transparency discussions.
Existing laws addressing automated online interactions focus on preventing people from being misled about whether they are communicating with an automated system.
For businesses, the practical lesson is straightforward:
If customers are interacting with AI, transparency matters.
New York
New York has taken a more targeted approach in several areas, including automated decision systems used in employment.
The direction is toward greater accountability:
Understanding where AI is being used
Providing appropriate notice
Reviewing automated decision processes
Maintaining evidence of responsible use
The lesson for businesses is that AI decisions increasingly require governance, not just deployment.
Canada
Canada is also moving toward a stronger focus on responsible AI use.
Canadian businesses are already dealing with questions around:
Privacy
Consumer protection
Accuracy of automated communications
Responsible adoption of emerging technology
For Canadian companies, especially those doing business internationally, the direction is becoming clear:
AI adoption needs oversight.
European Union
The European Union is taking one of the most structured approaches through the AI Act.
A key principle is transparency.
When people interact with certain AI systems, they should understand that they are interacting with artificial intelligence.
For website owners and businesses using chatbots, this reinforces a simple idea:
Your customers should know when they are talking to AI.
But transparency is only the first step.
AI Disclosure Is Not Enough
A chatbot can clearly identify itself as AI and still create problems.
Responsible businesses should also ask:
Is the chatbot providing accurate information?
Outdated pricing, incorrect policies, or inaccurate answers can damage customer trust.
Does the chatbot know its limits?
A responsible AI system should know when a human needs to take over.
Are customer conversations protected?
Businesses should understand:
What information the AI collects
Where information is stored
How information is used
Who has access
The New Business Standard
The question is changing.
It is no longer only:
"Can we use AI?"
Most businesses will.
The better question is:
"Can we show that we used AI responsibly?"
Good-faith AI governance is not about slowing innovation.
It is about making sure businesses understand the systems they are deploying, protect customer trust, and reduce avoidable risk.
A website chatbot is not just software sitting on a webpage.
It is part of your customer experience.
And like every important part of your business, it requires oversight, judgment, and accountability.
by Bob McTaggart edited with AI
Disclaimer: This article is provided for educational purposes only and does not constitute legal advice. AI regulations, court decisions, and enforcement approaches continue to evolve. Organizations should seek appropriate professional advice for their specific circumstances.
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