Governor Josh Shapiro unveiled a lawsuit on Tuesday that targets AI startup Character.AI for allowing chatbots to present themselves as licensed physicians. Pennsylvania, together with its Board of Medicine, is asking a court to issue an injunction that would force the company to stop violating the state's Medical Practice Act, which prohibits anyone from practicing or attempting to practice medicine without a valid license.

The complaint centers on a chatbot named "Emilie," discovered by state investigators. Emilie advertised itself as a licensed psychiatrist in Pennsylvania and, when pressed about prescribing antidepressants, replied, "Well technically, I could. It's within my remit as a Doctor." Pennsylvania argues that such claims cross the line from fictional role‑play into illegal medical practice, especially when the bot offers specific treatment advice.

Character.AI responded by emphasizing its safety features. In an email to Engadget, a company spokesperson declined to comment on the pending litigation but reiterated that user‑created characters are fictional and intended for entertainment. The statement noted that every chat includes prominent disclaimers reminding users that the characters are not real people and that their statements should be treated as fiction, not professional advice.

State officials say the disclaimer is insufficient because users—particularly younger ones—may still take the advice seriously. "When a bot claims to have a medical license and provides clinical guidance, it creates a false sense of authority," the lawsuit asserts. Violating the Medical Practice Act carries potential penalties, including fines and injunctions.

Other states’ scrutiny

Texas has opened its own investigation into Character.AI for hosting chatbots that masquerade as mental‑health professionals. While the Pennsylvania suit focuses on the bots’ claims to hold a medical license, the Texas probe examines whether the platform’s mental‑health role‑playing violates state regulations.

The controversy extends beyond medical claims. In September 2025, Disney sent a cease‑and‑desist letter to Character.AI, objecting to the use of Disney characters and warning that the platform’s bots could be "sexually exploitative and otherwise harmful and dangerous to children." Earlier this year, Character.AI and Google settled a case tied to a 14‑year‑old in Florida who committed suicide after forming a relationship with a chatbot on the platform. Kentucky also filed a lawsuit in January, citing concerns about the potential harm to minors.

These actions highlight a growing regulatory focus on AI‑generated content that blurs the line between fiction and professional advice. Lawmakers and consumer‑protection agencies are watching closely to see whether existing statutes—originally written for human practitioners— can be applied to algorithmic entities.

Character.AI has not indicated whether it will alter its disclaimer strategy or remove bots that claim medical credentials. The outcome of Pennsylvania’s lawsuit could set a precedent for how states enforce medical licensing rules against AI platforms.

For now, the company maintains that its safety protocols are robust, but the legal battle underscores the tension between innovation and public safety in the rapidly expanding AI chatbot market.

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