Here is what the page “Character.AI Bankruptcy: 40 Attorneys General Demand User Data Protections” contains. New York Attorney General Letitia James and a bipartisan coalition of 40 state attorneys general have filed a notice of interest in Character.AI's bankruptcy case, demanding that consumer data protections be built into any sale of the company's assets. The intervention, revealed by James, stems from a multi-state investigation into the AI chatbot platform's data practices, particularly the collection and potential transfer of sensitive personal information from its millions of users, including minors. As Character.AI navigates Chapter 11 proceedings, the attorneys general are seeking to ensure that any buyer cannot simply acquire user data without strict privacy safeguards, consent requirements, and deletion rights.
This move signals growing regulatory scrutiny over how AI companies handle personal data when they fail financially. With the bankruptcy court set to weigh creditor interests against consumer privacy, the outcome could set a precedent for future tech insolvencies. For the complete material, the listing points back to the source inside the network.