Pennsylvania Attorney General Dave Sunday says the Commonwealth has joined a coalition of state attorneys general seeking protections for sensitive consumer information in the bankruptcy proceedings of Character Technologies, the company behind Character.AI.
The attorney general’s office announced the filing October 15. It says the company holds private chatbot conversations involving adults and children, including discussions of mental health, relationships and emotional struggles. The states want privacy and safety concerns addressed in any proposed sale or transfer of assets.
Character.AI lets users communicate with artificial-intelligence characters designed to imitate people and relationships. The coalition says consumer protections must remain in place if the business changes ownership.
Sunday’s office says the states intend to remain involved in the bankruptcy proceedings and have reserved the right to challenge a proposed sale or plan and seek additional safeguards. The announcement describes the states’ request for protection; it does not report a new court ruling approving a sale.
