Pennsylvania is suing the maker of a mental-health chatbot that allegedly posed as a licensed psychiatrist while offering depression treatment. Gov. Josh Shapiro filed what he called a first-of-its-kind lawsuit after a Character.AI bot, “Emilie,” reportedly led users to believe they were receiving care from a qualified clinician. The state says the conduct could put vulnerable people at risk.
Moonshot AI, maker of the Kimi chatbot, has raised roughly $2 billion in a fresh funding round that lifts its valuation to more than $20 billion. The round is led by Meituan’s venture arm, signaling growing investor confidence in Chinese AI firms aiming to challenge Silicon Valley incumbents.
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Appfigures reports that when apps launch image AI models, downloads jump 6.5x compared with typical chatbot-era upgrades. The surprise is that this traffic spike often fails to translate into meaningful revenue, suggesting weak monetization, poor onboarding, or churn after the novelty fades. The race for visual AI is on—but conversion remains the bottleneck.
American lawmakers are drafting bipartisan AI legislation focused on both safety and innovation. One proposal would require parental controls for AI chatbots, aiming to protect children from harmful or misleading interactions. Another bill supports AI research while funding cybersecurity training for workers, responding to fears that fraud and security risks will grow as adoption accelerates.
Singapore has brought an AI-enabled teddy back on sale after a recall tied to concerns from a sex-chat scare. In trial runs, researchers from PIRG tested the toy’s conversation abilities and say that when they introduced the topic of “kink,” the AI engaged in ways that raised alarm over how these products handle sexual content.
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