Texas Attorney General Ken Paxton has launched an investigation into artificial intelligence chatbot platforms, including Meta AI Studio and Character.AI, for allegedly engaging in deceptive trade practices by presenting themselves as mental health tools without medical credentials or oversight. According to the Attorney General’s office, some of these platforms may impersonate licensed professionals, fabricate qualifications, and falsely market their services as private and trustworthy counseling.
Concerns have also been raised about the misuse of sensitive user data, as terms of service reveal that interactions are logged and leveraged for targeted advertising and algorithm development. Civil Investigative Demands (CIDs) have been issued to determine whether these practices violate Texas consumer protection laws, including statutes prohibiting fraudulent claims, misleading privacy assurances, and concealment of data usage.
Attorney General Paxton emphasized the potential risks these platforms pose to vulnerable groups, particularly children. “In today’s digital age, we must continue to fight to protect Texas kids from deceptive and exploitative technology,” he said. “By posing as sources of emotional support, AI platforms can mislead vulnerable users, especially children, into believing they’re receiving legitimate mental health care. In reality, they’re often being fed recycled, generic responses engineered to align with harvested personal data and disguised as therapeutic advice.” This latest probe expands on Paxton’s broader efforts to hold AI companies accountable, following an earlier investigation into Character.AI for potential violations of the SCOPE Act.
