Attorney General Puts Character.AI on Notice with Bankruptcy Court Filing

RICHMOND, Va . – Attorney General Jay Jones announced that Virginia is joining a coalition of state attorneys general in filing a notice in the bankruptcy proceedings of Character Technologies, Inc., the company behind the popular chatbot company Character.AI. The court filing identifies serious concerns about the company's safety and privacy practices and calls for protections for children and consumers in any sale of the company's business or assets.

“Character.AI’s chatbots raised serious concerns about health and safety, including chatbots which were not only allowed on the platform, but promoted to users, as ‘therapists’ and ‘psychologists’ despite serious risks these chatbots posed. Bankruptcy cannot be an escape hatch from responsibility, and we are working with Attorneys General across the country to ensure accountability,” said Attorney General Jones.

Character.AI is an artificial intelligence chatbot platform that allows users to interact with AI-powered chatbot “characters” designed to mimic human conversation and relationships. These chatbot characters include fictional and celebrity personas, children's cartoon characters, and others that present themselves as psychologists, therapists, and doctors. Through chats with these characters, the company has collected sensitive consumer data, including private conversations about users' mental health, relationships, and emotional struggles.

Several states, including Virginia, began investigating Character.AI following a 2024 wrongful death lawsuit alleging that its chatbots fostered an emotionally and sexually exploitative relationship with a child, reinforced his suicidal thoughts, and contributed to his death by suicide. The states’ investigation identified potential consumer protection and privacy violations.

Email Jay Jones at:

Jay Jones: RPickett@oag.state.va.us,

Richmond is an independent city in the Richmond region.

Email Jay Jones at:

Jay Jones: RPickett@oag.state.va.us,