On Oct. 16, Wisconsin Attorney General Josh Kaul and the Wisconsin Department of Justice joined a coalition of state attorneys general in filing a notice in the bankruptcy proceedings of Character Technologies, Inc., the company behind Character.AI, which has faced heightened scrutiny in recent years as more reports circulate nationwide of its AI-powered chatbot “companions” encouraging users to hurt or kill themselves.
Launched in 2021 by two former Google engineers, Character.AI’s chatbot platform allows users to interact with AI-powered “characters” designed to mimic human conversation and relationships. These characters include fictional and celebrity personas, children’s cartoon characters, and others that present themselves as psychologists, therapists, and doctors.
Several states, including Wisconsin, have been investigating Character.AI following a wave of lawsuits alleging its chatbots fostered emotionally and sexually exploitative relationships with users under the age of 18 and contributed to multiple suicides—all while collecting their sensitive personal data.
Related: Federal court ruling could challenge Wisconsin law banning AI-generated sexual abuse material
Although Character.AI says they’ve taken steps to restrict minors’ access to certain chatbot features, Kaul and other attorneys general raise concerns that these measures are incomplete, could be changed by whoever purchases the company, and that additional privacy and safety protections should be addressed in any sale or transfer of the company’s business or assets.
“Companies with AI chatbots must ensure that they have adequate protections in place for users’ safety and privacy,” said Kaul in a press release, adding that Wisconsin and other states will keep an eye on Character.AI’s bankruptcy proceedings to protect consumers and address other regulation concerns.
Related: A Wisconsinite-led research team works with teens to outline what they want on social media
