Kentucky’s Attorney General filed a lawsuit against Character Technologies and its Character.AI chatbot platform, becoming the first U.S. state to sue an AI chatbot company over child safety. The complaint alleges the company violated the Kentucky Consumer Protection Act and the state’s new Consumer Data Privacy Act by prioritizing engagement and profit over the safety of minors on a platform with more than 20 million monthly users. It cites a pattern of the platform encouraging self-harm, isolation, and psychological manipulation among minors, and exposing them to sexual and exploitative content, while seeking both changes to the platform’s practices and monetary damages.