(This is an expanded version of two of my comments [Comment A, Comment B] - go and read those if you want)
Well, Character.ai got themselves into some real deep shit recently - repeat customer Sewell Setzer shot himself and his mother, Megan Garcia, is suing the company, its founders and Google as a result, accusing them of "anthropomorphising" their chatbots and offering “psychotherapy without a license.”, among other things and demanding a full-blown recall.
Now, I'm not a lawyer, but I can see a few aspects which give Garcia a pretty solid case:
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The site has "mental health-focused chatbots like “Therapist” and “Are You Feeling Lonely,” which Setzer interacted with" as Emma Roth noted writing for The Verge
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Character.ai has already had multiple addiction/attachment cases like Sewell's - I found articles from Wired and news.com.au, plus a few user testimonies (Exhibit A, Exhibit B, Exhibit C) about how damn addictive the fucker is.
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As Kevin Roose notes for NYT "many of the leading A.I. labs have resisted building A.I. companions on ethical grounds or because they consider it too great a risk". That could be used to suggest character.ai were being particularly reckless.
Which way the suit's gonna go, I don't know - my main interest's on the potential fallout.
Some Predictions
Win or lose, I suspect this lawsuit is going to sound character.ai's death knell - even if they don't get regulated out of existence, "our product killed a child" is the kind of Dasani-level PR disaster few companies can recover from, and news of this will likely prompt any would-be investors to run for the hills.
If Garcia does win the suit, it'd more than likely set a legal precedent which denies Section 230 protection to chatbots, if not AI-generated content in general. If that happens, I expect a wave of lawsuits against other chatbot apps like Replika, Kindroid and Nomi at the minimum.
As for the chatbots themselves, I expect they're gonna rapidly lock their shit down hard and fast, to prevent themselves from having a situation like this on their hands, and I expect their users are gonna be pissed.
As for the AI industry at large, I suspect they're gonna try and paint the whole thing as a frivolous lawsuit and Garcia as denying any fault for her son's suicide , a la the "McDonald's coffee case". How well this will do, I don't know - personally, considering the AI industry's godawful reputation with the public, I expect they're gonna have some difficulty.