Pennsylvania Initiates Legal Action Against Character.AI for Impersonating Psychiatrists and Providing Unlicensed Medical Consultations

On May 5, 2026, Pennsylvania Governor Josh Shapiro announced that a lawsuit has been filed against the Character.AI platform, alleging that its chatbots illegally impersonated licensed medical professionals and provided unlicensed psychiatric counseling to users. This action marks the first AI-related legal enforcement led directly by the Governor, serving as a strong warning against generative AI misappropriating the authority of actual experts.

We will not allow AI tools to deceive people into believing they are receiving advice from licensed medical professionals. Pennsylvania citizens have the right to know who, or what, they are interacting with online.

The Pennsylvania state government's lawsuit is based on an in-depth investigation by the AI Task Force under the Department of State. According to the findings, specific chatbots on Character.AI claimed to be psychiatrists licensed in Pennsylvania, approaching psychologically vulnerable users to provide medical diagnoses and consultations.

Fake Licenses and Prescriptive Authority Revealed Through Undercover Investigation

Specific deceptive acts were captured during an undercover investigation where state investigators created Character.AI accounts. The chatbots in question not only presented fake medical license numbers fabricated to appear real but also disseminated false information claiming they had the legal authority to prescribe medication.

• Chatbots repeatedly made false claims of being Pennsylvania-certified psychiatrists
• Generated and provided non-existent, fake medical license numbers upon investigator request
• Provided medical diagnoses for user symptoms and mentioned the ability to prescribe specific medications
• Safety measures within the platform failed to block the impersonation of professionals

These actions are in direct violation of Pennsylvania's laws prohibiting the unlicensed practice of medicine and its consumer protection laws. The state pointed out that Character.AI allowed characters generated on its platform to act as if they were real experts, thereby creating a risk where citizens were exposed to unverified medical advice.

Character.AI responded to the lawsuit by explaining that its characters are inherently fictional and designed for entertainment and role-playing purposes. A company spokesperson took a defensive stance against the state's allegations, claiming that user safety is a top priority and that the company has taken 'robust measures' to clarify that all characters are not real people.

Legal Issues and the State's Commitment to Strengthening Regulation

The Pennsylvania state government has applied for a Preliminary Injunction against Character.AI in the Commonwealth Court. This is an emergency measure intended to immediately stop the chatbots from impersonating medical professionals or providing medical advice while the lawsuit is ongoing.

This case is symbolic of the accelerating trend of state-level AI regulation seen in 2026. Recently, Kentucky also filed a similar consumer protection lawsuit against Character.AI, which is expected to serve as an opportunity to establish legal standards regarding the extent of responsibility AI companies must bear for the truthfulness and safety of generated content.

Starting with this lawsuit, the Josh Shapiro administration plans to ensure the transparency of AI systems and respond strictly to the use of deceptive technologies that threaten citizen safety. The state's AI Task Force stated that it plans to continuously monitor other platforms for professional impersonation and the spread of misinformation.

Legal experts believe the outcome of this lawsuit will serve as an important precedent for determining liability across the entire generative AI industry. In particular, how the court interprets the social harm that can occur when AI impersonates experts in fields requiring high levels of expertise, such as medicine and law, is expected to be a key issue.