BMW Toronto reinstates buy-back offer after AI chatbot error
BMW chatbot deal error exposed the risks of AI sales quotes and buy-back offers See why BMW Toronto reversed course and how this case could affect your rights
BMW Toronto initially revoked a buyback offer made to a customer after saying an AI chatbot had made the deal in error, then later reinstated the original amount after the story drew attention.
Zack Giacomelli, who bought a used 2021 BMW from the dealership in 2023, was negotiating to sell the car back after major repair issues. He said the chatbot, called Quinn, quoted him $27,162.79, which matched the balance he still owed. But the dealership later said the offer was not valid and explained that the chatbot had misunderstood the numbers.
Legal experts said the case highlights the risks businesses face when using AI in customer service and sales. In a previous Canadian tribunal case involving Air Canada, a company was found responsible for incorrect information given by its chatbot. After CBC News contacted BMW Toronto, the dealership reinstated the original offer and said it would limit future buyback negotiations to human staff and make it clearer when customers are dealing with AI.