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DOJ raises privacy concerns over potential sale of Character.AI chats

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DOJ raises privacy concerns over potential sale of Character.AI chats

The Department of Justice's Executive Office for U.S. Trustees has flagged privacy concerns regarding a potential sale of Character.artificial intelligence (AI) user chats and recommended that a consumer privacy ombudsman be appointed to advise the court on regulating which data can be sold and on what terms.

Why it matters: Users of Character.AI and stakeholders in consumer data privacy should monitor this case, as the outcome will establish precedent for how court-supervised sales handle sensitive conversational data from artificial intelligence (AI) platforms.

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