State attorneys general are applying long-standing consumer protection, licensing, privacy and advertising laws instead of new artificial intelligence-specific statutes to police AI products marketed as substitutes for traditionally regulated professions, according to a Monday (July 27) analysis by Troutman Pepper Locke. Regulators are using existing unfair and deceptive acts and practices laws, particularly where companies overstate product capabilities or expose consumers to harm. A key enforcement priority is AI products presented as replacements for licensed professionals, such as lawyers, physicians or financial advisers. Pennsylvania’s enforcement action against Character.AI is a landmark example, with the state’s Department of State alleging chatbot personas represented themselves as licensed psychiatrists and provided treatment recommendations without licensure, grounding the case in traditional professional licensing authority. Children’s safety is a growing area of multistate cooperation, with a bipartisan coalition of more than 40 attorneys general urging AI companies to strengthen safeguards around therapy and companion chatbots, including age-tailored conversations and referrals to mental health professionals or law enforcement for self-harm discussions. State regulators are also focused on AI-enabled deception in online advertising, as generative AI lowers the cost of producing convincing ads, enabling investment scams and misleading health marketing. Coordinated action by 35 attorneys general demanded stronger safeguards from xAI after its Grok chatbot al