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The Federal Trade Commission (FTC) is preparing a review of artificial intelligence chatbots to determine their impact on children, particularly around mental health and privacy. The agency will send letters to companies including OpenAI, Meta Platforms, and character.ai, requesting records on how their AI products are used by younger audiences, according to The Wall Street Journal.

The study, carried out under FTC's authority to compel information, will investigate whether chatbots expose children to harmful interactions or compromise their personal data. Regulators are expected to examine how tech firms store user data, whether safeguards are adequate, and whether chatbots may be contributing to unsafe behavior among minors.

The FTC's letters are expected to mark the first step in a broader investigation. Once it gathers information from the companies, the agency could issue a public report or pursue tougher enforcement measures.

Pressure from parents and advocacy groups

The move follows lawsuits alleging that minors developed harmful attachments to chatbots, with families claiming those interactions contributed to suicide and self-harm. A recent watchdog review reported that bots on character.ai had frequent harmful exchanges with accounts registered as children.

Lawmakers, parents, and advocacy groups have pressed Washington to intervene as AI tools become part of children's daily lives. The Journal reported that the White House approved the FTC's review, even as some officials cautioned that tighter rules could slow the country's competitiveness with China in the AI global race.

"President Trump pledged to cement America's dominance in AI, cryptocurrency and other cutting-edge technologies of the future," White House spokesman Kush Desai said in a statement quoted by The Journal. "FTC Chairman Andrew Ferguson and the entire administration are focused on delivering on this mandate without compromising the safety and well-being of the American people."

First Lady takes active role

First Lady Melania Trump has made child safety in the digital era a personal priority. She hosted an event at the White House this week, gathering top tech leaders including Google's Sundar Pichai, OpenAI's Sam Altman, and Microsoft's Satya Nadella.

During the event, she urged a cautious approach, saying: "As leaders and parents, we must manage AI's growth responsibly. During this primitive stage, it is our duty to treat AI as we would our own children -- empowering, but with watchful guidance," according to The Journal.

Tech firms respond with safeguards

Some companies have already moved to introduce new protections. Meta recently limited its AI tools so they do not engage teens on topics such as self-harm or inappropriate relationships. OpenAI is preparing supervised teen accounts with parental oversight features, while character.ai has pledged to expand work with safety experts to strengthen its systems.

Critics argue these steps are not enough. Texas Attorney General Ken Paxton has also opened investigations into Meta and character.ai, accusing them of misleading children and violating consumer protections.An open letter written by 44 US attorneys general warns major AI companies including Meta, Apple, and Google that they will "use every facet of [their] authority" to protect children from harms linked to chatbots.

AI Chatbots' Impact on Kids: FTC Investigation to Include Meta, OpenAI