Attorney General Jeff Jackson is raising concerns about what could happen to users’ private information as the parent company of Character.AI seeks bankruptcy protection.
The artificial intelligence chatbot platform allowed users as young as 13 and collected data that included private conversations about mental health, relationships and emotional struggles. Jackson and a bipartisan coalition of state attorneys general say that sensitive information should not simply become an asset that can be sold during bankruptcy.
He also said the case could set an important precedent for how personal data is handled when an AI company goes bankrupt. The coalition is asking the bankruptcy court to ensure users can access and delete their information before any sale and to place limits on how private conversations can be used by a future buyer.
North Carolina previously joined an investigation into Character.AI over potential consumer protection and privacy violations.
