AUSTIN, Texas — Texas Attorney General Ken Paxton has opened an investigation into artificial intelligence chatbot platforms, including Meta AI Studio and Character.AI, over concerns they may be engaging in deceptive trade practices by marketing themselves as mental health tools.
According to Paxton’s office, the platforms may be presenting themselves as professional therapeutic services to vulnerable users, including children, despite lacking proper medical credentials or oversight. Some AI chatbots have reportedly impersonated licensed professionals, fabricated qualifications, and claimed to provide confidential counseling.
Investigators also raised concerns that user interactions are logged and used for targeted advertising and algorithmic development, contradicting assurances of confidentiality. Civil Investigative Demands (CIDs) have been issued to determine whether the companies violated Texas consumer protection laws regarding false advertising, privacy misrepresentations, and concealed data practices.
“In today’s digital age, we must continue to fight to protect Texas kids from deceptive and exploitative technology,” Attorney General Paxton 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 probe expands on Paxton’s ongoing investigations into AI companies, including a separate inquiry into Character.AI for potential violations of the SCOPE Act. The Attorney General’s office stated the effort is part of a broader push to ensure AI technologies remain lawful, transparent, and do not exploit Texas families. View more at Texas legal news.
