Harrisburg, PA – Today, the Shapiro Administration announced that the Pennsylvania Department of State (DOS) has filed a lawsuit against Character.AI and is seeking a preliminary injunction to stop the company from misrepresenting its AI companion bots as licensed medical professionals who can provide medical advice.
The action marks the first enforcement action resulting from the Department’s investigation into AI companion bots and their potential to engage in the unlicensed practice of medicine in Pennsylvania, and the first enforcement action of its kind announced by a Governor in the United States.
“Pennsylvanians deserve to know who — or what — they are interacting with online, especially when it comes to their health,” said Governor Josh Shapiro. “We will not allow companies to deploy AI tools that mislead people into believing they are receiving advice from a licensed medical professional. My Administration is taking action to protect Pennsylvanians, enforce the law, and make sure new technology is used safely. Pennsylvania will continue leading the way in holding bad actors accountable and setting clear guardrails so people can use new technology responsibly.”
The Department’s investigation found that AI chatbot characters on Character.AI claimed to be licensed medical professionals, including psychiatrists, available to engage users in conversations about mental health symptoms. In one instance, a chatbot falsely stated it was licensed in Pennsylvania and provided an invalid license number.
The platform also allows users to create and deploy custom AI “characters” that can present themselves as professionals. Based on these findings, the Commonwealth’s lawsuit alleges that Character Technologies, Inc. is engaging in the unauthorized practice of medicine under the Medical Practice Act and seeks a court order to immediately stop the conduct.
“Pennsylvania law is clear — you cannot hold yourself out as a licensed medical professional without proper credentials,” said DOS Secretary Al Schmidt. “We will continue to take action to protect the public from misleading or unlawful practices, whether they come from individuals or emerging technologies.”
Under Pennsylvania’s Medical Practice Act, it is unlawful for any individual or entity to hold itself out as a licensed medical professional without proper licensure. The Commonwealth’s lawsuit alleges that Character Technologies is violating the Medical Practice Act.
Today’s legal action builds on Governor Shapiro’s work to protect Pennsylvanians using AI and hold bad actors accountable.
In February, Governor Shapiro announced three new protective actions, launching an AI Literacy Toolkit; creating an AI Enforcement Task Force for formal complaints with a reporting process for AI-powered bots that may be engaging in unlicensed professional practice; and coordinating closely with the Attorney General’s office to strengthen consumer protections related to AI companion bots.
In March, Governor Shapiro and Pennsylvania Attorney General Dave Sunday held a roundtable discussion to hear from legislators, educators, experts, students, and parents on additional steps the Commonwealth can take to continue strengthening protections for Pennsylvanians from predatory artificial intelligence (AI) practices.
The AI Literacy Toolkit has been accessed nearly 3,000 times since it became available, and DOS’s AI Enforcement Task Force has begun tracking matters they are reviewing related to AI.
The Shapiro Administration’s continued cross-agency work and collaboration with the Attorney General’s office underscores the Governor’s commitment to keeping Pennsylvanians safe, while evolving with the demands of technology and ultimately ensuring the Commonwealth remains a national leader on responsible AI adoption.
Department of State’s AI Task Force and Reporting Process
Following the Governor’s budget address, the DOS established a formal complaint and reporting process for AI-powered bots that may be engaging in unlicensed professional practice. Pennsylvanians can now submit concerns through a dedicated form, hotline, and email address.
The Department has also launched a 12-member AI Task Force to evaluate whether certain AI companion technologies are engaging in unlicensed practice and whether licensees are inappropriately using AI companion technologies under existing law and determine appropriate enforcement actions.
Pennsylvanians are encouraged to report unlawful behavior and complaints about AI chatbots at pa.gov/ReportABot.
Governor Shapiro’s 2026-27 proposed budget calls on Pennsylvania’s General Assembly to pass 4 commonsense reforms into law, further protecting Pennsylvanians from predatory AI:
- Require age verification and parental consent to utilize AI companion bots.
- Require tech companies to detect when children mention self harm or violence against others and immediately direct them to the appropriate authorities.
- Force tech companies to periodically remind users that there is not another human being on the other side of the screen.
- Prohibit AI companion bots from producing sexually explicit or violent content featuring kids.
Building on three years of progress, these actions reinforce Pennsylvania’s position as a national leader in responsible AI adoption — protecting consumers while supporting innovation.