Rapid Analysis: Character AI & Children

Abstract

This rapid analysis examines Character AI, a multimodal chatbot platform that has rapidly grown to over 20 million monthly active users, many of whom are under 18. Unlike productivity-focused AI tools, Character AI frames itself as an "AI entertainment company," offering user-generated characters for a range of purposes: from creative assistants, to games, to emotional support characters, to fantasy role-playing and more. Our audit highlights the platform’s unique dynamics: weak age verification, evolving youth-driven use cases that are signals for innovation (i.e. roleplay and 'comfort bots'), and platform risks. While Character AI enables creative and expressive play, it also presents new regulatory challenges. We identify critical gaps in youth protections, explore opportunities for youth-centered co-design, and propose action starters for policymakers seeking to balance innovation with safety in this new digital landscape.