Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
ST. LOUIS, Mo. (First Alert 4) – If an AI chatbot offers you a great price on a car, is it a binding offer that a dealership must honor?
That question is coming up as more car dealers are using chatbots to negotiate with consumers.
The Canadian network CBC reported that a Toronto man, Zach Giacommelli, was looking to sell his car back to the BMW Toronto dealership.
He received a text from “Quinn” offering him $27,162 for it. But a salesman said that was from an AI chatbot that made a mistake, and offered him $7,000 less instead.
After CBC contacted the dealership, it gave Giacomelli the original $27,000 for the car.
But was the dealership obligated to honor the chatbot’s offer?
“We see more dealerships using AI to negotiate on their behalf,” said Ray Shefska, 43-year veteran of the car sales industry and co-founder of CarEdge, a platform that uses AI to help consumers get upfront car pricing.
We know that AI can make mistakes in general. So, can a price to buy or sell a car from an AI chatbot be binding?
Shefska says it can be if it hasn’t been stated that an offer is contingent upon inspecting the vehicle in person.
“The truth of the matter is, whether it’s a human being on behalf of the dealership or an AI chatbot, it is binding. As far as the FTC would be concerned, and many legal entities would be convinced, that’s a legitimate conversation that’s happening. And whatever that the chatbot agrees to, the dealership would have to honor,” explained Shefska.
Under the Uniform Electronic Transactions Act and the federal ESIGN Act, electronic and automated “agents” can form contracts without human review.
But there are also legal questions about whether the chatbot is a legal spokesperson for a dealership.
We asked Shefska how you can tell whether you’re talking with an AI chatbot or a person.
“If the answers that you’re getting from a chatbot have no passion involved in them, where it’s just matter of fact, constantly matter of fact, that would indicate I’m dealing with a chatbot, not a human being,” said Shefska.
When looking to buy or sell a vehicle online, experts say it’s a good idea to print or save screenshots of chatbot offers.
Also, ask if offers, financing terms, incentives, and vehicle availability are verified by staff.
And ask for written confirmation of an offer from a dealership representative.
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