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North Carolina Attorney General · October 20, 2026 · Primary source

Attorney General Jeff Jackson Asks Court to Protect Kids’ Data in A.I. Company Bankruptcy

Score 50PRIMARYregulatoryState AGNC

Summary

North Carolina Attorney General Jeff Jackson filed a court action in the Character.AI bankruptcy proceeding, arguing that users, including children, should have the right to delete their personal data before any sale of the company's assets. The AI chatbot platform featured bots that presented themselves as psychologists, therapists, and doctors, and collected data from users as young as described in the filing. The AG's intervention focuses on consumer data-deletion rights and child privacy protections in the context of an AI company's insolvency.

What this may mean

The filing targets an AI platform that deployed chatbot personas mimicking licensed mental health and medical professionals, raising concerns at the intersection of consumer protection, child data privacy, and healthcare-adjacent digital services. The action does not create new regulatory requirements for healthcare organizations but signals growing state AG scrutiny of AI tools that simulate clinical relationships and collect sensitive user data. The proceeding is in bankruptcy court, so any relief is contingent on the court's disposition of the case.

Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.

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