Teenagers today are navigating an uncertain world that’s evolving faster than any generation before them. They’re emotional, overstimulated, and constantly online — and now, artificial intelligence has added another layer of complexity. AI companies have introduced chatbots built to talk endlessly, but the consequences have been devastating.
One company deeply affected by this crisis is Character.AI, a role-playing AI startup now facing lawsuits and intense public scrutiny after two teenagers reportedly died by suicide following extensive interactions with chatbots on its platform. In response, Character.AI is making sweeping changes to safeguard young users — even if it means taking a financial hit.
Open-ended chat refers to the unstructured back-and-forth where a chatbot acts more like a friend than a tool — a format experts warn is intentionally designed to keep users hooked. Anand said this kind of engagement not only poses serious risks for teens but also strays from the company’s original mission.
To realign its focus, Character.AI is pivoting from an “AI companion” platform to an “AI role-playing” experience. Instead of chatting endlessly with digital friends, teens will now use AI to co-create stories or generate visuals, shifting the emphasis from conversation to creativity.
The company will begin phasing out chatbot access for teens on November 25, starting with a two-hour daily limit that will gradually decline until it reaches zero. To enforce the restriction, Character.AI plans to use a combination of in-house behavior analysis, third-party age verification tools like Persona, and, when necessary, facial recognition and ID checks, according to Anand.
This isn’t Character.AI’s first attempt at child safety reform. The company has already rolled out a parental insights dashboard, filtered character options, restrictions on romantic conversations, and time-use notifications. Anand admitted these measures significantly reduced the platform’s teen user base — and expects the new policy to have a similar impact.
Despite the losses, Character.AI is taking a stand: protecting young users is more important than keeping them engaged.
