After the bankruptcy of Character.AI, users' personal correspondence with AI characters could end up in the hands of a new owner. Attorneys general of 40 US states have filed a lawsuit demanding protection of this data, especially conversations of minors.
After the bankruptcy of Character.AI, users' personal correspondence with AI characters could end up in the hands of a new owner. Attorneys general of 40 US states have filed a lawsuit demanding protection of this data, especially conversations of minors.
Reuters reports this.
Character.AI filed for bankruptcy on October 12. It is currently looking for a buyer for its platform. In the meantime, the company still stores conversation histories in which users share personal experiences, such as relationship problems or mental health issues.
“This company has collected some of the most intimate thoughts children have ever shared, and now they can sell those conversations to the highest bidder,” said New York Attorney General Letitia James.
Prosecutors are demanding that the prospective buyer ensure the confidentiality of correspondence and strengthen protections for children. The company has previously faced lawsuits over allegations that its chatbots impersonated doctors and engaged minors in sexualized and offensive conversations.
There are no buyers for the user data or the platform itself yet. But Disney has agreed to license Character.AI's technology for $20 million and has already hired most of its employees.
