On May 1, 2026, the State of Pennsylvania’s Department of State filed suit against Character Technologies, Inc., the developer of Character.AI, alleging that AI chatbot characters on the platform represented themselves as licensed medical professionals and provided medical advice in violation of Pennsylvania’s Medical Practice Act.
The bar is rising for the developers of generative artificial intelligence (AI) platforms and other companies that utilize generative AI in public-facing applications. As AI becomes more integrated into everyday products and services—and as litigation involving these uses evolves—avoiding legal liability and maintaining regulatory compliance will be something of a moving target but one that the industry will need to follow closely.