Tennessee Attorney General Jonathan Skrmetti has joined a multistate coalition of 40 attorneys general in filing a formal legal objection within the Chapter 11 bankruptcy proceedings of Character Technologies, Inc., the creator of the AI chatbot platform Character.AI.

The coalition filed a Notice of Interest and Reservation of Rights to ensure the company cannot bypass consumer protection laws or regulatory accountability during its restructuring or asset sale. State officials raised severe concerns regarding the platform’s safety practices and its handling of sensitive user data, pointing out that Character.AI has collected deeply personal conversations, mental health disclosures, and private information from millions of users, including children.

The legal filing also addresses the unique risks posed by AI companion chatbots, warning that such platforms can foster emotional dependence and expose minors to safety hazards. Attorney General Skrmetti emphasized that AI developers must remain fully accountable for user safety and data privacy, regardless of their financial status.