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Wire · regulatory

AG Coalition Launches Investigation Into Character.AI & Multiple AGs Sue OpenAI

23 October 2026 · By · Wire by Fusion42

Published

23 October 2026

Topic

regulatory

◆ Sectors

AI & ML

◆ Geography

United States

◆ Source

Read at lexology.com →

◆ Verified

Fusion42 · 23 October 2026 · Fusion42 review

A coalition of U.S. state Attorneys General has launched an investigation into Character.AI over safety and privacy concerns, focusing on sensitive data collection and risks to children. Separately, multiple states filed lawsuits against OpenAI alleging endangerment of children and deceptive practices related to AI chatbot safety and consumer protection violations.

This Wire brief sits within Fusion42's coverage of AI & ML.

◆ ◆ The Wire takeaway

You face rising legal scrutiny if your AI chatbot handles sensitive user data or targets minors. Updating safety features and data handling policies immediately is critical to protect your company from costly litigation and regulatory backlash.

◆ Coverage

1 source · 23 Oct 2026

◆ Related on Wire

◆ Topics

AI & MLcharacteraiopenaiattorney-generalprivacychild-safetylawsuits