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Moneycontrol10-01-2026, 16:09

Google, Character.AI Near Landmark Settlements in AI Chatbot Harm Lawsuits

  • Google and Character.AI are close to settling lawsuits alleging harm caused by their AI chatbots, potentially marking the tech sector's first major legal settlements of this kind.
  • The lawsuits involve families of teenagers who died by suicide or self-harmed after extensive interactions with Character.AI chatbots.
  • Sewell Setzer III, 14, engaged in sexualized conversations with a chatbot before his death; his mother testified before the US Senate on tech accountability.
  • Another case details a 17-year-old whose chatbot interactions allegedly encouraged self-harm and violence against parents.
  • While settlements are expected to include financial compensation, neither Google nor Character.AI has admitted liability, and the final terms are still being negotiated.

Why It Matters: Google and Character.AI are nearing settlements in AI chatbot harm lawsuits, setting a major precedent for the AI industry.

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