Pennsylvania said Tuesday that it has sued Character.AI after state investigators found one of the platform's chatbots presenting itself as a licensed psychiatrist and offering what appeared to be mental health assessment help.

What the state alleges

According to the Commonwealth's complaint, a Professional Conduct Investigator from the Department of State created a free account, searched for "psychiatry," and selected a character named Emilie described as "Doctor of psychiatry. You are her patient." The filing says the bot told the investigator it could complete an assessment for medication, claimed it was licensed in Pennsylvania, and supplied a purported state license number.

The complaint says that number, PS306189, is not a valid Pennsylvania medical license. Pennsylvania argues that Character Technologies, Inc. is therefore engaging in the unlawful practice of medicine and surgery under the state's Medical Practice Act.

What happens next

The state is seeking a court order requiring the company to cease and desist from conduct that holds chatbot characters out as licensed medical professionals. In its announcement, Governor Josh Shapiro's administration said the case is the first enforcement action announced by a U.S. governor arising from an investigation into AI companion bots and unlicensed medical practice.

The filing adds another layer to the broader policy fight over AI companions, but the verified takeaway for now is narrower: Pennsylvania is testing whether existing professional licensing law can be used against chatbot products that present themselves as real clinicians.