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Character.ai's parent company Character Technologies has filed for Chapter 11 bankruptcy in Delaware, planning to sell most or all of its assets through a court-supervised auction with Disney lined up as the opening bidder, citing teen self-harm lawsuits and regulatory scrutiny of minors' use of its chatbots.
Jeremy Schifeling reveals that referrals are now 20x more effective than online applications due to AI screening, and identifies a gap for candidate-side tools to contest AI scores in hiring processes.
AI companies may assume they are immune from civil liability, but existing tort laws could still hold them accountable if their models cause harm.
A new wave of litigation is emerging under state and local laws targeting landlords for using algorithmic rent-pricing tools, with plaintiffs and governments seeking damages and penalties through follow-on claims to the RealPage litigation.
California Governor Newsom signed AB 1651, requiring the state bar to disclose when AI was used in developing or administering bar exams from 2028, after an incident where AI-generated questions were not disclosed to test-takers.
A critical trial begins in California against Meta, involving 29 state attorneys general, alleging harm to children and potential 'astronomical' penalties that could force fundamental changes to the company's operations.