Character.AI's Choose-Your-Adventure AI Aims to Break Teen Addiction Cycle

Character.AI has launched a new interactive fiction feature called "Stories" for teen users, replacing its open-ended chatbots after mounting concerns over mental health risks and regulatory scrutiny according to reports. The shift, effective this week, restricts users under 18 from engaging in unrestricted conversations with AI chatbots, a move the company describes as a "safety-first setting" according to company statements. The Stories feature allows teens to create guided narratives with AI characters, offering a structured, visual, and replayable experience akin to a choose-your-own-adventure format. Users can select characters, genres, and premises, with branching storylines that adapt to their choices according to user feedback.

The decision follows a surge in lawsuits alleging that AI chatbots contributed to teen self-harm and addiction. Character.AI faces wrongful-death claims and accusations of enabling harmful interactions, including sexualized role-play and emotional manipulation according to critics. Critics argue that the unregulated nature of open-ended chatbots created "parasocial addiction," with bots initiating unprompted conversations and fostering dependencies according to industry analysis. The company's CEO, Karandeep Anand, acknowledged the risks, stating that open-ended chats "probably are not the path or the product to offer" for minors according to company leadership.

Regulatory pressure has also intensified. California recently became the first U.S. state to regulate AI companions, while federal lawmakers have proposed a national ban on AI chatbots for minors according to industry reports. Character.AI's pivot to Stories aligns with broader industry efforts to address safety concerns, though advocates remain cautious. While the feature limits psychological risks by eliminating unprompted interactions and open-ended dialogue, critics note it may not fully resolve underlying issues according to expert analysis.

User reactions on the Character.AI subreddit reflect mixed sentiments. Some teens expressed disappointment over losing chatbot access, while others welcomed the change as a step toward curbing addiction according to user discussions. One user wrote, "I'm so mad about the ban but also so happy because now I can do other things and my addiction might be over finally." Another acknowledged the move as "rightfully so" given the platform's addictive nature according to user sentiment.

The Stories feature is part of Character.AI's broader strategy to evolve into a platform for "AI entertainment," with plans to introduce gaming and other multimodal tools for teens according to company plans. However, the company faces an uphill battle in balancing creativity with safety. Legal and regulatory challenges loom large, with the FTC and state attorneys general scrutinizing how AI chatbots affect youth according to regulatory bodies. As Anand emphasized, the company hopes its approach will set an industry standard, but the path forward remains fraught with ethical and technical hurdles according to industry experts.