What to do when AI gets it wrong in front of a customer

When AI makes a mistake in front of a customer, treat it as your own mistake: correct it quickly and in person, then put a human check where it slipped through.

Sooner or later it will happen. If you use AI to draft replies, answer questions on your website or write up quotes, at some point it will tell a real customer something confidently wrong: a price that was never yours, say, or a refund policy it made up because the question seemed to deserve one. How much harm that does depends less on the error itself than on what you do in the next hour, and on whether anyone was checking in the first place.

What follows is general information, not legal advice. If a mistake has cost a customer real money, talk to your solicitor or insurer early.

Why does AI get things wrong so confidently?

AI tools produce the most likely-sounding answer, and a likely-sounding answer is not always a true one. When the tool doesn’t have the fact it needs, it rarely says so. It fills the gap with something plausible, in the same calm tone it uses for everything else. That is what people mean by AI hallucination, and the business risk is simple: the wrong answer arrives looking exactly like a right one.

The errors that reach customers tend to take a few familiar shapes:

  • Invented facts. A delivery date, a stock level or a discount that nobody gave it.
  • Stale facts. Last year’s prices or hours, picked up from an old document it was handed.
  • Invented policy. Asked something your instructions don’t cover, it guesses what a reasonable business would do and states it as yours.
  • Wrong tone. A cheerful reply to a complaint, or a breezy one to someone whose order went missing a week before Christmas.

Who is responsible when AI gives a customer the wrong answer?

Assume you are. Whatever a customer reads from your business, they read as coming from you, whether a person or a tool wrote it.

There is a well-known case on exactly this. In 2024 a Canadian tribunal ruled against Air Canada after the chatbot on its website told a grieving passenger he could claim a bereavement fare after he had already travelled, which was not the airline’s actual policy. The airline argued, in effect, that the chatbot was responsible for its own words. The tribunal didn’t accept that, and the airline had to pay. As far as I know no Irish court has had to rule on a case like it, and I wouldn’t bet a business on one seeing it differently.

Customers forgive a mistake far more readily than they forgive a business that blames its software.

What to do when an AI error reaches a customer

Correct it yourself, quickly, then deal with whatever let it through. In order:

  1. Contact them the same day. A short message or call from a named person. “The reply you got earlier had our cancellation terms wrong, and I’m sorry. Here is what actually applies.”
  2. Don’t hide behind the tool. If they ask, you can say an automated reply got it wrong, but the apology comes from you.
  3. Decide whether to honour it. If the customer acted on the wrong answer (booked, paid, turned down another supplier), honouring it is often the cheapest way out. If nobody relied on it, a correction is enough.
  4. Look for the same answer elsewhere. If the tool made up a policy once, it may have done it ten times. Search the sent folder or the chat history.
  5. Fix the source, then add the check. Update the information it works from, and put a review step where the mistake got out.

Say you run a guesthouse in Kinsale and the assistant on your website tells a guest that cancellation is free up to 24 hours before arrival, when your terms say seven days. The guest cancels two days out and expects a full refund. Most owners would refund it, write the seven-day rule into the assistant’s instructions in plain words, and tell it to pass any cancellation question to a person. The cost is one room night and an afternoon. Arguing about it would likely cost a review.

The person-in-the-loop rule: where to put the human check

Put a person between the AI and the customer wherever a wrong answer would cost money, break a promise or upset someone. Everywhere else, let it run and spot-check it.

Someone should read a message before it goes if it:

  • states a price, a date or a deadline
  • describes a refund, cancellation, warranty or any other term
  • answers a complaint, or anyone who is clearly upset
  • gives advice the customer might act on (health, legal, money, safety)
  • is the first message a new customer gets from you

The rest (a booking confirmation built from your calendar, an acknowledgement that an enquiry arrived, an internal summary) can usually go without a check, as long as somebody reads a handful each week. If you have written AI rules for staff, this list belongs in them. The post on writing an AI policy for a small business has a one-page version you can copy.

How to review AI output without reading every word twice

Look hardest at the parts most likely to be wrong and most expensive if they are, and skim the rest. A quick way to review AI output before it goes to a customer:

  • Check every number and date against the source. This is where invented facts hide.
  • Ask whether you supplied each fact. If a sentence contains something you didn’t give it, find out where it came from.
  • Read the promise. Would you stand behind what this commits you to?
  • Read it as the customer would. Especially the first and last lines, which set the tone.

Thirty seconds on a reply is usually enough. What you want is a habit your team will still keep on a busy Friday, and a long checklist won’t survive that.

Setup matters as much as checking. A tool that answers only from a short document you wrote (your prices, hours and terms) makes far fewer mistakes than one left to fill gaps from general knowledge. Tell it plainly what to do when it doesn’t know: “If the answer is not in this document, say a member of the team will reply, and stop there.” The post on using AI to answer enquiries and take bookings shows what that looks like on a website.

Is it still worth using AI with customers?

For most small businesses, yes, provided the checks sit in the right places. People make mistakes with customers too. The difference is that a person usually knows when they’re unsure and the AI doesn’t, so give it a narrow brief and keep a person on the answers that matter.

If you’d like help working out which of your customer messages are safe to hand to AI and where the checks should sit, the AI Assessment is where I’d start: a fixed-fee look at how your week actually runs, with a plain plan at the end.

Book the AI Assessment

The assessment is credited in full if you go on to a build, and if I can’t find you five hours a week you pay nothing. See how it works.