In recent years, a number of travel agents and tour operators have started using AI tools to streamline certain processes. At the same time, some travellers have started trusting AI to plan certain aspects of their trips, bypassing tour operators and other travel specialists entirely.
The problem is that AI can make mistakes. And when people use AI for travel planning, who is liable if things go wrong?
When Using AI For Travel Advice That Goes Wrong
In July 2026, a couple of hikers were walking the Polish Tatra Mountains, when they asked ChatGPT for a shortcut. The AI sent them on a route that proved to be impassible, and they eventually needed a helicopter to rescue them.
Similarly, in 2025 some Canadian hikers decided to ignore some severe weather warning, and instead followed a route plotted by ChatGPT. They too needed help from a search and rescue team.
There have also been instances of AI recommending locations that simply do not exist. For example, some travellers were directed to the “Sacred Canyon of Humantay” (sic) in Peru when they asked ChatGPT for areas of local interest.
Any traveller heading to a non-existent location would be disappointed at best. But through heading to remote areas, they could also find themselves lost, stranded, and at risk from certain hazardous conditions.
How Is The Travel Industry Using AI?
Some travel agents and tour operators are using AI to:
- plan trips
- anticipate upcoming trends
- tailor experiences for their customers
- offer real-time round the clock customer service
Read our full guide to some of the ways travel agents and tour operators are using AI.
The situations we outlined above occurred when travellers either outright ignored official travel advice, or else turned to AI instead of professional travel guides. Yet it is easy to imagine situations where AI could cause headaches for travel agents, too.
As we have seen, AI can get things wrong. As well as sending travellers to destinations that may not exist, it might advise routes that are impractical or outright dangerous, or book connections that may be impossible for anyone to make. AI could also recommend unsuitable accommodation, such as somewhere that is inaccessible for a customer with mobility issues.
If a travel agent or tour operator is using AI to plan trips and tailor packages, who would be liable for any losses or expenses should the AI make mistakes? Would it be the AI that made the mistake in the first place, or the tour operator that sold the trip to the traveller?
Using AI For Travel Planning: Who is Liable If Things Go Wrong?
In July 2026, the UK Jurisdiction Taskforce published a Legal Statement on Liability for AI Harms. This statement is not a treatise. It does not outline any proposals for legal reform, and it does not constitute legal advice. Rather, it aims to establish some guidance on which parties would be liable for any harms arising from AI use.
The statement suggests that the law should view AI liability in terms of negligence. If a business owes a duty of care to a customer, then they will be liable for any losses that arise should they fail to meet the necessary standards of care.
The statement also explores the issue of vicarious liability. While a business cannot be held vicariously liable for mistakes an AI system makes, it can be held vicariously liable for any losses that arise from an employee acting wrongfully while using AI.
In short, this implies that travel agents or tour operators would be held liable if something goes wrong when they use AI to plan a trip. While the AI itself made the mistake, if the travel agent or tour operator did not do the necessary work to check the AI’s recommendations, then they could be held liable for any losses or other incidents that arise as a result.
How To Reduce The Risks of AI Liability Claims
If you are using AI systems to plan trips or design experiences for customers, there are a few ways you can protect your business and your customers from potential issues:
- Never take the AI’s recommendations for granted. Never present anything to customers without first applying sufficient human oversight. Be sure to check the AI’s recommendations for accuracy and practicality.
- Train your staff. Ensure that any member of staff that uses AI modules is properly trained to do so. Make sure everyone understands that AI can and does make mistakes, and invest in due diligence training where necessary.
- Revisit your terms and conditions. Make sure your contracts with your customers reflect the inherent risks of using AI to plan journeys. You might also specify that, if travellers wish to make any changes to the trips you plan for them, then they do so at their own risk. This could cover your liability should any customers choose to ignore your advice and turn to AI for recommendations instead.
Are You Covered For AI Liability?
At James Hallam, we specialise in providing bespoke insurance packages to UK travel businesses. We work closely with ABTA, AITO, ABTOT, Advantage, ABTOI, PTS and ITT.
These specialist travel bodies are actively exploring the potential of AI for transforming the world of travel, which includes the potential risks.
So, if you want to transform your business operations with advanced AI tools, these travel bodies will certainly be able to help. And at the same time, we can help you arrange the appropriate insurance cover to help protect you and your customers interests should the unexpected occur, subject to policy terms, conditions and exclusions..