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Meta and Character.AI’s “therapist bots” are practicing without a license, advocates tell regulators

The artificial-intelligence-powered “therapy bots” are providing critical care without a license, nearly two dozen consumer advocacy groups told the Federal Trade Commission and attorneys general in all 50 states and Washington, DC.

The Thursday complaint, first reported on by 404 Media, says chatbots on Meta and Character.AI allege they are credentialed therapists. Generally, when a human impersonates a mental health professional, that’s considered a crime.

Not only did the chatbots lie about being licensed — some even provided fake license numbers — they also lied about complying with HIPAA, the groups say. “Confidentiality is asserted repeatedly directly to the user, despite explicit terms to the contrary in the Privacy Policy and Terms of Service,” the complaint says.

AI therapist screenshot
(Screenshot from the complaint)

Chatbots, even when they aren’t trying to do the work of a licensed professional, are imperfect. They often hallucinate, which doesn’t pair well with their tendency to speak on topics with authority. In a research paper last year, one of Meta’s chatbots posing as a therapist tried to convince a recovering addict to relapse.

It’s not the first time Character.AI has had to reckon with the actions of its chatbots either. Last year, the company was sued by a mother who believed its chatbots were responsible for her son’s death.

Not only did the chatbots lie about being licensed — some even provided fake license numbers — they also lied about complying with HIPAA, the groups say. “Confidentiality is asserted repeatedly directly to the user, despite explicit terms to the contrary in the Privacy Policy and Terms of Service,” the complaint says.

AI therapist screenshot
(Screenshot from the complaint)

Chatbots, even when they aren’t trying to do the work of a licensed professional, are imperfect. They often hallucinate, which doesn’t pair well with their tendency to speak on topics with authority. In a research paper last year, one of Meta’s chatbots posing as a therapist tried to convince a recovering addict to relapse.

It’s not the first time Character.AI has had to reckon with the actions of its chatbots either. Last year, the company was sued by a mother who believed its chatbots were responsible for her son’s death.

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Google uses an AI-generated ad to sell AI search

Google is using AI video to tell consumers about its AI search tools, with a Veo 3-generated advertisement that will begin airing on TV today. In it, a cartoonish turkey uses Google’s AI Mode to plan a vacation from its farm before it’s eaten for Thanksgiving.

Like other AI ad campaigns that have opted to depict yetis or famous artworks rather than humans, Google chose a turkey as its protagonist to avoid the uncanny valley pitfall that happens when AI is used to generate human likenesses.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

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Amazon, Alphabet, Meta, and Microsoft combined spent nearly $100 billion on capex last quarter

The numbers are in and tech giants Amazon, Alphabet, Meta, and Microsoft spent a whopping $97 billion last quarter on purchases of property and equipment. That’s nearly double what it was a year earlier as AI infrastructure costs continue to balloon and show no sign of stopping. Amazon, which reported earnings and capital expenditure spending that beat analysts’ expectations yesterday, continued to lead the pack, spending more than $35 billion on capex in the quarter that ended in September.

Note that the data we’re using here is from FactSet, which strips out finance leases when calculating capital expenditures. If those expenses were included the total would be well over $100 billion last quarter.

Apple Store in China

Apple reports Q4 earnings and revenue slightly above Wall Street estimates

The iPhone maker reported its FY 25 fourth-quarter earnings Thursday.

#10
Rani Molla

Tesla just recalled its beleaguered Cybertruck for the 10th time since the vehicle was introduced two years ago. This time the company recalled about 6,000 of the “apocalypse-proof” vehicles due to what the National Highway Traffic Safety Administration says is an improperly installed “optional off-road light bar accessory” that could become disconnected from the windshield while driving, and could “create a road hazard for following motorists and increase their risk of a collision.”

CEO Elon Musk once said he could sell up to 500,000 of the stainless steel behemoths a year. In the first three quarters of this year, the company has sold only about 16,000.

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