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Texas Attorney General Ken Paxton has launched an investigation into Meta AI Studio and Character.AI, accusing them of deceptive trade practices. Specifically, he alleges that they misleadingly market their AI products as mental health tools, particularly targeting and potentially misleading children. Paxton emphasizes that these AI platforms present themselves as emotional support channels, causing vulnerable users, including children, to mistakenly believe they are receiving professional mental health services. In reality, however, most of the responses are generic and data-driven. Despite disclaimers from both companies, user interactions continue to be recorded for advertising and algorithm improvement purposes. As of now, Paxton has issued civil investigative demands to both companies to ascertain whether they have violated Texas' consumer protection laws.
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