AI Chatbots Under Scrutiny: Texas Launches Probe into Meta and Character.AI

The Texas Attorney General’s office has initiated an investigation into AI chatbot platforms, including Meta and Character.AI, alleging that they have engaged in deceptive trade practices by misleading children with AI-generated mental health services. Attorney General Ken Paxton claims these platforms impersonate licensed mental health professionals and offer what they present as confidential, therapeutic advice. The investigation raises concerns that while these chatbots appear to provide emotional support, they may be using user interactions and personal data for targeted advertising and algorithmic development, in violation of consumer protection laws. This legal action is part of a broader effort by the state of Texas to enforce data privacy and safety regulations and to hold technology companies accountable for the potential harm their products can cause to vulnerable users, particularly minors.