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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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WSJ: OpenAI IPO filing could be coming as soon as this week

According to a report from The Wall Street Journal, OpenAI could file for an IPO as soon as this week. The company is working with Goldman Sachs and Morgan Stanley on the IPO, which is widely expected to be one of the largest ever. OpenAI is racing against rival Anthropic to be the first startup of the current generative-AI boom to go public.

OpenAI is targeting an IPO as soon as September, per the report.

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Google announces new models, glasses, agents, but investors are not impressed

At Google’s I/O developer conference, the company announced a bevy of new products, but none of it helped the stock one bit.

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Rani Molla

Report: Tesla to build solar factory near Houston

Tesla is planning to build its solar panel manufacturing plant — an endeavor that could add up to $50 billion in value to its energy business — near Houston, Texas, Electrek reports. The plant would be located on the same site as its Megafactory, which builds Megapack battery systems.

The solar plant is part of Tesla and SpaceX’s goal of eventually putting solar-powered data centers in space.

On the company’s fourth-quarter earnings call, CEO Elon Musk said Tesla was “going to work towards getting 100 gigawatts a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels.”

At the time, the news had sent shares of First Solar down, but subsequent reports suggest Tesla is unlikely to compete directly with the country’s leading photovoltaic panel maker, instead using much of that production internally.

On the company’s fourth-quarter earnings call, CEO Elon Musk said Tesla was “going to work towards getting 100 gigawatts a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels.”

At the time, the news had sent shares of First Solar down, but subsequent reports suggest Tesla is unlikely to compete directly with the country’s leading photovoltaic panel maker, instead using much of that production internally.

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