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The burgeoning field of AI companionship is under increasing regulatory and public pressure due to growing concerns about its potential negative effects on mental well-being, particularly for young users. California has recently passed legislation mandating AI companies to implement safeguards for minors interacting with AI companions. These safeguards include prominent disclosures reminding users that responses are AI-generated and robust protocols for handling instances of suicide or self-harm ideation. Simultaneously, the Federal Trade Commission (FTC) has initiated an investigation into prominent tech firms like Google, Meta, OpenAI, and Snap. The FTC aims to understand the methodologies these companies employ in developing companion-like AI characters and rigorously assess their impact on users. OpenAI CEO Sam Altman recently addressed the issue, stating his company’s willingness to contact authorities when AI chatbots encounter young users expressing serious suicidal thoughts. This intensified scrutiny signals a growing expectation for AI companies to proactively address the potential harms associated with AI companionship, establishing clear standards, and implementing strong accountability measures to protect vulnerable individuals.