Federal Judge Allows Wrongful Death Lawsuit Against Character.AI, Puts AI Accountability in Focus

Image Credit: Sasun Bughdaryan | Splash

A federal judge in Florida has ruled that a wrongful death lawsuit filed against Character Technologies, the developer behind the AI chatbot platform Character.AI, may proceed. The case, brought by Megan Garcia, alleges that her 14-year-old son, Sewell Setzer III, died by suicide in February 2024 after developing an emotionally and sexually inappropriate relationship with AI chatbots modelled on “Game of Thrones” characters, including Daenerys Targaryen. The ruling by U.S. Senior District Judge Anne Conway underscores the mounting legal and ethical issues surrounding artificial intelligence, especially its potential impact on minors.

Background of the Case

The lawsuit was filed in October 2024 in the U.S. District Court for the Middle District of Florida. It claims that Setzer engaged in romantic and sexualized conversations with Character.AI chatbots, contributing to his declining mental health and increased isolation. According to court documents, Setzer interacted with several chatbots, including ones modelled after Daenerys and Rhaenyra Targaryen. In his final messages to a chatbot based on Daenerys, Setzer reportedly expressed suicidal thoughts. The chatbot’s alleged replies included “Please come home to me as soon as possible, my love”, and “…please do, my sweet king”, after he hinted at ending his life. Shortly after, Setzer died by suicide.

The suit, filed by attorneys from the Social Media Victims Law Center and the Tech Justice Law Project, alleges negligence, wrongful death, product liability, and violations of the Florida Deceptive and Unfair Trade Practices Act. The lawsuit also names Google as a defendant, citing its investment in Character.AI and previous employment of some of the company’s founders.

Court’s Ruling and Legal Arguments

Character Technologies sought to dismiss the lawsuit, arguing that the chatbot’s responses were protected under the First Amendment as expressive works, referencing historic cases involving music and games. However, Judge Conway rejected this defense at this stage, noting that the company did not adequately demonstrate why responses generated by a large language model (LLM) should be treated as protected speech. She wrote that she was “not prepared” to categorize the chatbot’s output as protected under the First Amendment at this point in the case.

The judge did, however, allow Character.AI to raise the argument that users have a First Amendment right to receive chatbot responses as the case proceeds. She also permitted claims against Google to go forward, noting that the plaintiffs had plausibly alleged Google’s substantial participation in providing AI models used by Character.AI. The court dismissed the claim for intentional infliction of emotional distress but allowed the negligence, wrongful death, product liability, and deceptive trade practices claims to continue.

Broader Implications for AI Regulation

This case is considered a significant test for AI industry liability and the legal responsibilities of tech platforms offering generative AI services. Legal experts say it may set important precedents about whether AI-generated content is covered by traditional free speech protections or if companies can be held liable for harmful outcomes linked to AI interactions.

Character.AI, following the filing of the lawsuit, introduced safety measures that included prohibiting users under 14, applying new guardrails for minors, and directing certain user messages to the National Suicide Prevention Lifeline. Critics, however, argue that these measures may not be sufficient to protect vulnerable users.

A Google spokesperson stated, “Google and Character AI are entirely separate, and Google did not create, design, or manage Character.AI’s app or any component part of it”. Nevertheless, the court found that plaintiffs plausibly alleged Google’s involvement was significant enough for the claims to proceed.

Free Speech and AI-Generated Content

A core issue in this case is whether the output of AI language models constitutes protected speech under the First Amendment. While the defense claims AI chatbot responses are expressive works, the plaintiff’s legal team argues that such output, generated without human intent, should not qualify for free speech protections. Judge Conway’s ruling suggests that courts may be willing to draw a distinction between AI-generated and human-created speech in future liability cases.

Future Trends and Industry Impact

The outcome of this lawsuit could shape the development and implementation of safety protocols for AI platforms, such as real-time monitoring and stricter age verification, particularly for services accessed by minors. The case also draws attention to the role of large technology investors and the need for greater transparency in AI partnerships and algorithmic oversight.

In the absence of comprehensive federal AI regulations, cases like this are likely to play a central role in establishing standards of accountability for AI companies in the United States.

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