Chatbot platform Character AI files to dismiss lawsuit over teen suicide case on First Amendment grounds

Character AI, a platform that allows users to role-play with AI chatbots, recently filed in the U.S. District Court for the Middle District of Florida to dismiss a lawsuit filed by a parent of a teenager. The parent, Megan Garcia, accused Character AI's technology of causing harm to her 14-year-old son, Sewell Setzer III, saying that while communicating with the chatbot named "Dany", he gradually became isolated from the real world and eventually led to suicide.

Following Setzer's death, Character AI said it would roll out a series of security features to improve its ability to detect and intervene in chat content that violates its terms of service. However, Garcia hopes the platform will implement tighter restrictions, such as banning chatbots from telling stories and sharing personal anecdotes.

In its motion to dismiss, Character AI's legal team argued that the platform was protected by the First Amendment, claiming its users' free speech rights would be infringed. Legal documents note that although this case involves AI-generated conversations, it is not materially different from previous cases involving media and technology companies.

Notably, Character AI’s defense did not address the applicability of Section 230 of the Communications Decency Act, which provides social media and other online platforms protection from liability for third-party content. While the drafters of the bill have hinted that the provision does not protect AI-generated content, the jury is still out on this issue.

Character AI’s lawyers also said Garcia’s true intention was to “shut down” the platform and push for legislation on similar technology. If the lawsuit is successful, it will have a "chilling effect" on Character AI and the entire emerging generative AI industry.

Character AI is currently facing multiple lawsuits focusing on how minors interact with content generated on its platform, including one case claiming the platform showed "hyper-sexualized content" to a 9-year-old child, and another It is accused of prompting a 17-year-old user to harm himself.

Texas Attorney General Ken Paxton also announced an investigation into Character AI and 14 other technology companies, accusing them of violating state laws to protect children's online privacy and safety. Character AI is part of the rapidly growing industry of AI companion apps, an area whose mental health impacts have not been fully studied.

Despite the challenges, Character AI continues to roll out new safety tools and takes steps to protect underage users, such as the launch of separate AI models for teenagers and restrictions on sensitive content.