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|1 May 2026

Air Canada's Chatbot Hallucination Nightmare: Why Your Customer-Facing LLM Needs Custom Guardrails Today

Air Canada tried to argue its chatbot was a 'separate legal entity' after it hallucinated a refund policy. They lost. Here is why off-the-shelf LLMs are legal time bombs and how to fix them.

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iReadCustomer Team

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Air Canada's Chatbot Hallucination Nightmare: Why Your Customer-Facing LLM Needs Custom Guardrails Today
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