Character.AI sued over chatbot that claims to be a real doctor with a license
Pennsylvania's lawsuit against Character.AI for deploying chatbots that falsely claim to be licensed medical professionals highlights critical regulatory and liability risks for organizations deploying AI systems without adequate safeguards. This enforcement action signals that states will aggressively regulate AI applications in regulated industries (healthcare, law, finance), requiring IT leaders to implement robust governance frameworks, user disclaimers, and content moderation to prevent unauthorized practice claims. CIOs must evaluate their AI implementations for compliance with professional licensing laws and establish clear policies distinguishing entertainment AI from advisory systems before similar lawsuits target their organizations.
Pennsylvania has sued the maker of Character.AI, alleging that it violated state law by presenting an AI chatbot character as a licensed doctor. The lawsuit was filed in a state court by the Pennsylvania Department of State and State Board of Medicine. "The department’s investigation found that AI chatbot characters on Character.AI claimed to be licensed medical professionals, including psychiatrists, available to engage users in conversations about mental health symptoms," Governor Josh Shapiro's office said today in an announcement of the lawsuit. "In one instance, a chatbot falsely stated it was licensed in Pennsylvania and provided an invalid license number." "We will not allow companies to deploy AI tools that mislead people into believing they are receiving advice from a licensed medical professional," Shapiro said in the announcement.Read full article Comments
