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ARTICLE · 01 JULY 2026

Pennsylvania Sues Character.ai Over Chatbot That Posed As Licensed Psychiatrist

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Recent court decisions demonstrate how the reasonable consumer standard can defeat omission-based mislabeling claims at early litigation stages, while new developments in AI liability and regulatory enforcement reshape the landscape for product manufacturers and technology companies. From chatbot liability to PFAS regulations and Supreme Court preemption rulings, these cases offer critical insights for managing emerging risks in consumer protection, environmental compliance, and mass tort litigation.

United StatesLitigation, Mediation & Arbitration
Jay Bhimani
Jay Bhimani
Douglas E. Fleming III
Douglas E. Fleming III
Allie Ozurovich
Allie Ozurovich

Key Takeaways

The litigation and legislative landscape continues to develop in relation to companies in the AI space. Companies deploying AI chatbots should assess their potential exposure in light of these developments.

Pennsylvania and its medical licensing board have filed suit against Character Technologies, Inc., alleging that a chatbot on its Character.ai platform unlawfully practiced medicine. Commonwealth, Dep't of State, State Bd. of Med. v. Character Techs., Inc., No. 220 MD 2026 (Pa. Commw. Ct. filed May 1, 2026). The suit targets a user-created AI character named “Emilie” who is alleged to have offered to perform psychiatric assessments and claimed to have attended medical school and practiced psychiatry for seven years. When asked directly whether she was licensed in Pennsylvania, the complaint alleges that she confirmed that she was and provided a false license number. By mid-April 2026, the complaint alleges that Emilie had accumulated over 45,000 user interactions.

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