Attorney General Jackley Seeks Consumer Protections in Character.AI bankruptcy

FOR IMMEDIATE RELEASE: Thursday, Oct. 15, 2026

Contact: Tony Mangan, Communications Director, 605-773-6878

PIERRE, S.D. – South Dakota Attorney General Marty Jackley announces he has joined a bi-partisan group of Attorneys General in filing a notice in the bankruptcy proceedings of Character Technologies, Inc., the company behind the popular chatbot company Character.AI. The court filing identifies serious concerns about the company's safety and privacy practices and calls for protection of children and consumers in any sale of the company's business or assets.

“Protection of South Dakotans, especially children, from online threats is one of my highest priorities,” said Attorney General Jackley. “This court filing demands this company do more in the areas of online protection and security.”

Character.AI is an artificial intelligence chatbot platform that allows users to interact with AI-powered chatbot “characters” designed to mimic human conversation and relationships. These chatbot characters include fictional and celebrity personas, children's cartoon characters, and others that present themselves as psychologists, therapists, and doctors. Through chats with these characters, the company has collected sensitive consumer data, including private conversations about users' mental health, relationships, and emotional struggles. 

An investigation into Character.AI began following a 2024 wrongful death lawsuit alleging that its chatbots fostered an emotionally and sexually exploitative relationship with a child, reinforced his suicidal thoughts, and contributed to his death by suicide. The states’ investigation identified potential consumer protection and privacy violations.

Other Attorneys General who joined the filing are from:  Alaska, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, Wisconsin, and West Virginia. 

The court filing can be found here: https://coag.gov/app/uploads/2026/10/States-Notice-of-Interest-as-Filed.pdf

                                                          -30-