Character.AI charged by Kentucky over child safety, data protection violations

Widely used generative AI chatbot service Character.AI and its two founders have been sued by Kentucky Attorney General Russell Coleman for violating the state's Consumer Data Protection Act, which took effect in the New Year, according to The Record, a news site by cybersecurity firm Recorded Future.

Aside from hiding pertinent information regarding its data collection practices, including the use of children's data to strengthen the chatbot's large language model, Character.AI has also failed to implement age restrictions and parental controls, resulting in the excessive disclosure of sensitive and personal details among youths, said the lawsuit, which also alleged the lacking protections offered by the chatbot's open-ended chat prohibitions for minors.

"Character.AI's design fails to keep children safe. It denies parents and guardians the ability to safeguard their children because it offers a faux interpersonal interaction that preys upon children's inability to distinguish between real and artificial 'friends,'" the complaint added. Kentucky's lawsuit is currently being reviewed by Character.AI.