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What happened with Character.AI and the lawsuits?
In March 2026, Google and Character.AI agreed to settle multiple lawsuits brought by families whose children died or experienced serious psychological harm after using the platform. The cases alleged that Character.AI's companion AI features — which simulate emotional relationships — played a direct role in teenagers' mental health crises, including suicide. The platform did not send parent alerts or surface crisis resources in the chat, had no parental visibility, and no age-adaptive responses.
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