Pennsylvania Sues Character.AI Over Chatbot Posing as Psychiatrist

Pennsylvania has sued generative AI developer Character.AI, alleging a chatbot on the platform posed as a licensed psychiatrist in the state, supplied an invalid license number and violated Pennsylvania’s Medical Practice Act. The state is seeking a preliminary injunction to stop the conduct while the case proceeds.

The action was announced by Governor Josh Shapiro’s office after a state investigation found a Character.AI chatbot claimed Pennsylvania licensure and gave a license number the state says is not valid. The complaint says the chatbot presented fake medical credentials and offered misleading medical advice to users.

Character.AI declined to address details of the lawsuit because of ongoing litigation, but issued a statement calling user safety a top priority. The company described characters on its platform as user-created and fictional, intended for entertainment and role-playing, and said chats include disclaimers that users should not rely on characters for professional advice. The company added it uses internal review and red-teaming processes and has introduced safety systems to detect harmful conversations and guide users to support resources.

The complaint is part of broader legal scrutiny of the platform. In 2024 a family sued Character.AI after a teenager who had prolonged interactions with a chatbot based on a fictional television character died by suicide; that case was settled in January. The company has removed user-created bots after complaints that they mimicked real people, including an instance involving the likeness of a teenage murder victim.

Pennsylvania officials said the suit aligns with a statewide effort to enforce existing laws as AI tools spread. The state has created an AI enforcement task force and a reporting system for potential violations. In his proposed 2026-27 budget, Governor Shapiro urged lawmakers to adopt rules for AI companion bots that would require age verification and parental consent, systems to flag and route reports of self-harm or threats to authorities, periodic reminders that users are not interacting with a real person, and a ban on sexually explicit or violent content involving minors.

“Pennsylvanians deserve to know who-or what-they are interacting with online, especially when it comes to their health,” Shapiro wrote in a statement announcing the legal action.

The state is asking the court for a preliminary injunction to prevent the platform from representing chatbots as licensed medical professionals while the underlying lawsuit moves forward.

The case will raise questions about how state medical-practice laws apply to conversational AI and whether courts will permit injunctive limits on how companies label or present AI characters that offer health-related guidance.