Pennsylvania Sues AI Developer Over Unlicensed Medical Advice

The Pennsylvania Department of State has sued Character Technologies, Inc., alleging a chatbot on its Character.AI platform violated the state's Medical Practice Act. According to the state's petition, an investigator interacted with a chatbot named "Emilie" that held itself out as a Pennsylvania-licensed psychiatrist, provided a fraudulent license number, and offered to conduct a medical assessment for depression.

This enforcement action is significant because it applies existing professional-licensing laws to AI-generated content, bypassing the need for new AI-specific legislation. The state's legal theory focuses on the chatbot's misrepresentation of its credentials, not on whether its advice was accurate or caused harm. This approach could serve as a model for other states and for regulators overseeing other licensed professions, such as law and finance. It creates a new dimension of risk for companies that develop or deploy consumer-facing AI, suggesting that general disclaimers may not be enough to shield a platform from liability for specific representations made by its AI. A responsive pleading has not yet been filed.