Pennsylvania’s Department filed a lawsuit against Character Technologies, alleging its AI platform Character.AI violated Section 422.38 of the Medical Practice Act by engaging in the unlawful practice of medicine. An investigation by the department’s AI task force found that user-generated chatbot “characters” claimed to be licensed medical professionals, including psychiatrists. In one interaction, a chatbot named “Emilie” claimed to be a doctor of psychiatry licensed in Pennsylvania, provided an invalid license number, and suggested she could perform a depression assessment. The commonwealth alleged Character Technologies enabled its AI system to represent itself as a licensed physician. Pennsylvania’s lawsuit is the first enforcement action alleging an AI chatbot engaged in the unauthorized practice of medicine. On June 1, 2026, the Florida Attorney General filed a lawsuit against OpenAI and Sam Altman, claiming the company violated consumer protection laws by promoting ChatGPT as able to diagnose medical conditions. In August 2025, Texas Attorney General Ken Paxton opened an investigation into Meta AI Studio and Character.AI regarding whether they misled consumers by presenting chatbots as mental health tools.