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Alberta.ca Account
Part of Fraud and consumer protection

Business use of artificial intelligence

How businesses can use artificial intelligence (AI) in a way that follows Alberta's consumer protection legislation.

Overview

Businesses that use artificial intelligence (AI) when dealing with consumers must continue to comply with Alberta’s consumer protection laws. Using AI does not change a business’s legal responsibilities.

If a business or licensee uses an AI tool or system that engages in an unfair practice, the business or licensee is accountable for its output. This applies even when the unfair practice is carried out by an AI system rather than a person.

How businesses can use AI

Businesses may use AI for a wide range of activities, including:

  • providing advice or assistance to consumers through chatbots
  • handling consumer phone calls
  • reviewing or generating invoices, contracts, records, or written correspondence
  • monitoring inventory, pricing, or competitors

Legislation

Alberta’s consumer protection legislation applies to any transaction or representation made by an AI system on a business’s behalf. This includes, but is not limited to, the:

How the legislation applies

Alberta’s consumer protection legislation applies to business use of AI in the following ways:

  • AI tools used to prepare advertising, documentation, contracts, invoices, notices, or other records must produce materials that comply with legislative requirements, even if the AI is not dealing directly with consumers.
  • Businesses are not required to tell consumers they are interacting with an AI agent. However, AI agents must not misrepresent themselves as real people.
  • When dealing with consumers, AI agents must clearly identify the business they are acting on behalf of.
  • Any representation or error made by an AI agent dealing directly with consumers is treated the same way as a representation or error made by a human agent, such as a salesperson or collector.
  • These requirements apply only to AI tools actively used by a business or to AI tools the business directs consumers to use. They do not apply to general purpose AI tools used independently by consumers.

Examples

  • If ChatGPT or Gemini incorrectly states that a business is offering a 50% off sale, and the business is not using or directing consumers to that AI tool, the business is not bound by that error.
  • If a business uses an AI sales email assistant to respond to consumer inquiries, and the AI sends an email offering a 50% discount, the business is responsible to honour it.

Business considerations

Businesses that use, or plan to use, AI should consider the following:

  • Review AI generated materials

    Businesses should have advertising, contracts, and documentation created by AI reviewed by an employee, lawyer, or other third party to ensure accuracy and compliance.

    If materials are not compliant, the business may be subject to enforcement action.

    Example

    ABC123 Gym uses an AI tool to write advertising copy. The advertisement states:

    • “$10 per month gym membership”
    • “Access to a sauna room”

    However:

    • The membership also includes a $5 monthly administration fee, making the total cost $15 per month.
    • The Edmonton location does not have a sauna room, even though the Calgary head office does.

    Both statements would be unfair practices and could be subject to enforcement action.

  • Be prepared to honour AI made offers

    Businesses should be prepared to honour offers or conditions made by AI agents on their behalf.

    Examples

    • If an AI agent used by ABC123 Coffee offers a consumer a 10% discount code and the business refuses to honour it, this may be an unfair practice if the consumer can show the offer came from the business’s website.
    • If an AI agent makes a clearly erroneous offer, such as “Your next 100 coffees are free,” and the business refuses to honour it, the business is expected to demonstrate that it took steps to prevent similar errors from happening in the future. Repeated errors of this type could be considered unfair practices.

  • Clearly communicate conditions

    If an AI agent makes an offer that is conditional, those conditions must be clearly communicated to consumers. Failure to do so may be an unfair practice.

    Example

    Widgetsales uses an AI agent on its website that tells a consumer they qualify for a free widget if they purchase 2 widgets at the regular price. The AI agent must also inform the consumer of any conditions, including:

    • the offer is only available to loyalty program members, and
    • the purchase must be financed

  • Businesses are responsible for legal compliance

    If an AI agent violates legislative requirements, the business is responsible.

    Examples

    ABC123 Renovations uses an AI agent to handle contracts, invoices, and payments.

    • The AI prepares direct sales or prepaid contracts that do not meet the requirements of section 35 of the Consumer Protection Act.
    • The AI sends invoices demanding payment before all work is completed, even though the business is not licensed as a prepaid contractor.

    In both cases, the violations could result in enforcement action(s) and provide consumers with extended cancellation rights under section 28 of the Consumer Protection Act.

    Another example would be a landlord who uses AI to automate maintenance requests and scheduling. They must still comply with section 23 of the Residential Tenancies Act. This includes providing written notice, signed by an agent of the landlord, stating the reason for entry and giving at least 24 hours’ notice.