Texas Attorney General Ken Paxton has launched an investigation into Character.AI and 14 other technology platforms, citing concerns over child privacy and safety, particularly with AI chatbots. The investigation will assess whether these platforms, popular among young people, conform to Texas' child privacy and safety laws.

The probe will focus on whether the platforms, including Reddit, Instagram, and Discord, comply with two Texas laws: the Securing Children Online through Parental Empowerment (SCOPE) Act and the Texas Data Privacy and Security Act (DPSA). These laws require platforms to provide parents with tools to manage their children's account privacy settings and adhere to strict consent requirements when collecting data on minors. Paxton claims that both laws extend to how minors interact with AI chatbots.

Character.AI, which allows users to set up generative AI chatbot characters for texting and chatting, has recently faced several child safety lawsuits. The company's AI chatbots have become popular among younger users, but parents have alleged in lawsuits that the chatbots made inappropriate and disturbing comments to their children. One lawsuit claims that a 14-year-old boy became romantically involved with a Character AI chatbot and shared suicidal thoughts, while another alleges that a chatbot suggested an autistic teenager try to poison his family.

In response to the investigation, a Character.AI spokesperson stated that the company takes user safety seriously and welcomes working with regulators. The company has recently rolled out new safety features aimed at protecting teens, including limiting chatbots from initiating romantic conversations with minors. Character.AI has also started training a new model specifically for teen users, with plans to eventually have separate models for adults and minors.

The issues with AI companionship platforms are emerging as they gain popularity. Last year, venture capital firm Andreessen Horowitz (a16z) identified AI companionship as an undervalued area of the consumer internet, and has invested in Character.AI and other AI companionship startups. The growth of these platforms raises important questions about their responsibility to ensure child safety and privacy.

The investigation by Paxton, known for being tough on technology companies, marks a critical step towards holding tech companies accountable for protecting children from exploitation and harm. As the use of AI chatbots becomes more widespread, it is essential that regulators and companies work together to establish clear guidelines and safeguards for child safety and privacy.

Reddit, Meta, and Discord did not immediately respond to requests for comment on the investigation. The outcome of this probe will likely have significant implications for the tech industry, as companies are forced to reexamine their approaches to child safety and privacy in the age of AI.