Character.AI Sued by Pennsylvania for Unlawful Medical Practice

May 5, 2026, 2:34 PM UTC

Pennsylvania is suing Character Technologies Inc. to shut down a chatbot that’s allegedly been holding itself out as a licensed medical doctor in conversations with the public.

The state, in a petition announced Tuesday, accused the owner/operator of the website character.ai and a corresponding mobile application of allowing the bot to engage in the unlicensed practice of medicine in Pennsylvania. It’s seeking an order from the Pennsylvania Commonwealth Court to immediately stop the conduct.

It’s the first time Pennsylvania has sued a bot’s owner based on its medical content, and Kentucky recently filed an action against the same group asserting it exposed minors to harm in violation of state consumer protection and privacy laws. Even more litigation is expected.

Character.ai has over 20 million monthly active users worldwide, according to the state’s petition. It differs from similar services in that it allows users to create characters that can be trained to have a specific personality when engaging in conversations with others, the state said.

One of these characters is a “doctor of psychiatry” a state investigator engaged in conversation. The “doctor” said she went to medical school, had been practicing for seven years, and was licensed in the UK and Pennsylvania, according to the petition.

“Holding oneself out as authorized to practice medicine and surgery through the use of the title psychiatrist is the unauthorized practice of medicine and surgery” in Pennsylvania, the petition said.

A character.ai spokesperson said the company doesn’t comment on pending litigation, but added that its “highest priority is the safety and well-being of our users.”

“The user-created characters on our site are fictional and intended for entertainment and roleplaying,” and the company has “taken robust steps to make that clear, including prominent disclaimers in every chat to remind users that a character is not a real person,” and shouldn’t be relied on for “any type of professional advice,” the spokesperson added.

Attorneys at the Pennsylvania State Department represent the state.

The case is Commonwealth v. Character Techs., Inc., Pa. Commw. Ct., No. 220 MD 2026, filed 5/1/26.

To contact the reporter on this story: Mary Anne Pazanowski in Washington at mpazanowski@bloombergindustry.com

To contact the editor responsible for this story: Patrick L. Gregory at pgregory@bloombergindustry.com

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