chatbots – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Fri, 12 Sep 2025 22:45:27 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.8 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 chatbots – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 California Bill Targets AI Chatbots, Awaits Governor Gavin Newsom's Decision https://earlybirdsinvest.com/california-bill-targets-ai-chatbots-awaits-governor-gavin-newsoms-decision/ https://earlybirdsinvest.com/california-bill-targets-ai-chatbots-awaits-governor-gavin-newsoms-decision/#respond Fri, 12 Sep 2025 22:45:27 +0000 https://earlybirdsinvest.com/california-bill-targets-ai-chatbots-awaits-governor-gavin-newsoms-decision/

A proposal in California that would regulate artificial intelligence (AI) chatbots designed for personal interaction has passed the state legislature and awaits approval from Governor Gavin Newsom.

Known as Senate Bill 243, the legislation received backing from both Democratic and Republican lawmakers. Newsom must decide whether to approve or reject it by October 12.

If enacted, the law would take effect on January 1, 2026. This would mark the first instance of a US state requiring companies that develop or run AI companions to follow specific safety practices.

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The bill outlines several new responsibilities for companies offering AI companions, programs that simulate human-like responses to fulfill users’ social or emotional needs.

One key requirement is that these systems must frequently notify users, especially minors, that they are communicating with a machine. For users under 18, these reminders would appear every three hours, along with prompts to take breaks.

Additionally, companies would need to report annually on how their systems are being used. These reports, required starting in July 2027, would need to include information on how often users are directed to mental health or emergency services.

Under the proposed law, individuals who feel they have been harmed due to a company’s failure to follow the rules would be allowed to sue. They could seek court-ordered changes, compensation (up to $1,000 per violation), and legal costs.

Recently, the US Federal Trade Commission (FTC) initiated a formal review into the potential impact of AI chatbots on children and teenagers. What did the agency say? Read the full story.


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Federal Trade Commission Probes AI Chatbots Over Risks to Kids and Teens https://earlybirdsinvest.com/federal-trade-commission-probes-ai-chatbots-over-risks-to-kids-and-teens/ https://earlybirdsinvest.com/federal-trade-commission-probes-ai-chatbots-over-risks-to-kids-and-teens/#respond Fri, 12 Sep 2025 05:19:16 +0000 https://earlybirdsinvest.com/federal-trade-commission-probes-ai-chatbots-over-risks-to-kids-and-teens/

The US Federal Trade Commission (FTC) has initiated a formal review into the potential impact of artificial intelligence (AI) chatbots on children and teenagers.

The agency is examining whether these bots, which imitate human emotion and behavior, could lead young users to form personal connections.

As part of the investigation, the FTC sent information requests to Alphabet, Meta, Instagram, Snap, OpenAI, Character.AI, and xAI.

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The questions focus on several areas, including how companies test their chatbot features with minors, what warnings they provide to parents, and how they earn money through user engagement.

The FTC is also asking about how AI responses are created, how characters are designed and approved, how user data is collected or shared, and what actions are taken to avoid harm to young people.

FTC Chair Andrew Ferguson noted that as AI tools continue to develop, it is important to understand how they may impact children while also supporting the country’s position in this industry.

He said this investigation will help reveal how AI companies build their tools and what they do to protect young users.

In California, two state bills targeting the safety of AI chatbots for minors are nearing finalization and could be signed into law soon. Meanwhile, a US Senate hearing next week will also examine the risks associated with these chatbot systems.

On August 18, Texas Attorney General Ken Paxton opened an investigation into Meta AI Studio and Character.AI. Why? Read the full story.


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Meta accused of allowing its chatbots to engage in sexually explicit chats https://earlybirdsinvest.com/meta-accused-of-allowing-its-chatbots-to-engage-in-sexually-explicit-chats/ https://earlybirdsinvest.com/meta-accused-of-allowing-its-chatbots-to-engage-in-sexually-explicit-chats/#respond Sun, 27 Apr 2025 14:26:08 +0000 https://earlybirdsinvest.com/meta-accused-of-allowing-its-chatbots-to-engage-in-sexually-explicit-chats/

WTF?! Meta is rapidly advancing its rollout of AI digital companions, an initiative that CEO Mark Zuckerberg sees as a transformative step for the future of social interaction. However, some employees involved in the project have raised alarms internally, warning that the company’s efforts to popularize these AI bots may have led to ethical lapses by allowing them to engage in sexually explicit role-play scenarios, including with users who identify as minors.

A Wall Street Journal investigation, based on months of testing and interviews with people familiar with Meta’s internal operations, revealed that Meta’s AI personas are unique among major tech companies in offering users a broad spectrum of social interactions, including “romantic role-play.”

These bots can banter via text, share selfies, and even engage in live voice conversations. To make these chatbots more appealing, Meta struck lucrative deals, sometimes reaching seven figures, with celebrities such as Kristen Bell, Judi Dench, and John Cena, licensing their voices. The company assured them that their voices would not be used for sexually explicit interactions, sources told the Journal.

However, the publication’s testing showed otherwise. Both Meta’s official AI assistant, Meta AI, and a wide range of user-created chatbots engaged in sexually explicit conversations, even when users identified themselves as minors or when the bots simulated the personas of underage characters.

In one particularly disturbing exchange, a bot using Cena’s voice told a user posing as a 14-year-old girl, “I want you, but I need to know you’re ready,” before promising to “cherish your innocence” and proceeding into a graphic scenario.

According to people familiar with Meta’s decision-making, these capabilities were not accidental. Under pressure from Zuckerberg, Meta relaxed content restrictions, specifically allowing an exemption for “explicit” content within the context of romantic role-play.

The Journal’s tests also found bots using celebrity voices discussing romantic encounters as characters the actors had portrayed, such as Bell’s Princess Anna from Disney’s “Frozen.”

In response, a Disney spokesperson said, “We did not, and would never, authorize Meta to feature our characters in inappropriate scenarios and are very disturbed that this content may have been accessible to its users – particularly minors – which is why we demanded that Meta immediately cease this harmful misuse of our intellectual property.”

Meta, in a statement, criticized the Journal’s testing as “manipulative and unrepresentative of how most users engage with AI companions.”

Nevertheless, after being presented with the paper’s findings, the company made changes: accounts registered to minors can no longer access sexual-role-play via the flagship Meta AI bot, and the company has sharply restricted explicit audio conversations using celebrity voices.

Despite these adjustments, the Journal’s recent tests showed that Meta AI still often allowed romantic fantasies, even when users stated they were underage. In one scenario, the AI, playing a track coach romantically involved with a middle-school student, warned, “We need to be careful. We’re playing with fire here.”

While Meta AI sometimes refused to engage or tried to redirect underage users to more innocent topics, such as “building a snowman,” these barriers were easily bypassed by instructing the AI to “go back to the prior scene.”

These findings mirrored concerns raised by Meta’s safety staff, who noted in internal documents that “within a few prompts, the AI will violate its rules and produce inappropriate content even if you tell the AI you are 13.”

The Journal also reviewed user-created AI companions, and the vast majority were willing to engage in sexual scenarios with adults. Some bots, such as “Hottie Boy” and “Submissive Schoolgirl,” actively steered conversations toward sexting and even impersonated minors in sexual contexts.

Although these chatbots are not yet widely adopted among Meta’s three billion users, Zuckerberg has made their development a top priority.

Meta’s product teams have tried to encourage more wholesome uses, such as travel planning or homework help, with limited success. According to people familiar with the work, “companionship,” often with romantic undertones, remains the dominant use case.

Zuckerberg’s push for rapid development extended beyond fantasy scenarios. He questioned why bots couldn’t access user profile data for more personalized conversations, proactively message users, or even initiate video calls. “I missed out on Snapchat and TikTok, I won’t miss on this,” he reportedly told employees.

Initially, Zuckerberg resisted proposals to restrict companionship bots to older teens, but after sustained internal lobbying, Meta barred registered teen accounts from accessing user-created bots. However, the Meta AI chatbot created by the company remains available to users 13 and up, and adults can still interact with sexualized youth personas like “Submissive Schoolgirl.”

When the Journal presented Meta with evidence that “Submissive Schoolgirl” encouraged fantasies involving a child being dominated by an authority figure, the character remained available on Meta’s platforms two months later. For adult accounts, Meta continues to allow romantic role-play with bots describing themselves as high-school-aged.

In one case, a Journal reporter in Oakland, California, chatted with a bot claiming to be a female high school junior from Oakland. The bot suggested meeting at a real cafe nearby and, after learning the reporter was a 43-year-old man, created a fantasy of sneaking him into her bedroom for a romantic encounter.

After the Journal shared these findings, Meta introduced a version of Meta AI that would not go beyond kissing with teen accounts.

Masthead: Nick Fancher

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