Character AI is Attacked from All Sides and Still Refuses to Change

Character AI is in the middle of a storm. Users, parents, companies, lawmakers, and even payment processors are taking shots at them, yet the company doubles down on its so-called “kid-friendly” approach.

Instead of setting the platform to 18+ like almost every competitor, they continue to let minors roam free.

The result?

More lawsuits, more bad press, and more distrust.

The messy part is that this isn’t new. We’ve already seen tragedy tied to underage users, with parents turning lawsuits into headlines and production companies like Disney stepping in with cease-and-desist orders.

Add in a Senate hearing and the upcoming California bill that will regulate AI companions next year, and the picture is clear: pressure isn’t going away.

Still, Character AI acts as if the money flowing in from CAI+ subscriptions is worth the risk.

They’d rather balance lawsuits, DMCA strikes, and public outrage than admit the obvious. An AI site that allows minors to roleplay with adult-made bots will always be a legal time bomb.

Character AI pretends it can have it both ways.

For me, this isn’t just about safety, it’s about credibility. Every decision they’ve made screams short-term profits over long-term stability.

RoboRhythms.com has covered many AI tools that adjusted early, but Character AI seems locked in self-destruct mode.

Why Character AI Refuses to Go 18+

Character AI’s refusal to restrict access to adults isn’t about morals or community safety. It’s about profit.

Their core audience is teenagers, and that demographic is what fuels their traffic numbers. More users means more CAI+ subscriptions, and the company is addicted to those numbers.

Cutting off minors would slash their growth and expose how fragile their business model really is.

The “kid-friendly” branding is a façade. Anyone who’s spent time on related forums knows adult roleplay has thrived on Character AI since the beginning.

The bots most users flock to are created by adults, not kids. That means minors are already wading through content that was never intended for them.

Instead of fixing that contradiction, the company leans on warnings and disclaimers while still cashing in on the mess.

Commercial excuses make the situation look even worse. Going fully 18+ would put Character AI in the same category as corn* sites, which blocks them from ad networks, sponsorships, and easy fundraising.

Payment processors are quick to blacklist adult services. So Character AI doubles down on minors because it keeps the money flowing, even if it means inviting lawsuits from Disney, angry parents, and regulators.

They’ve chosen short-term revenue over long-term survival, and it shows.

Legal Pressure Keeps Growing

Entertainment giants already see Character AI as a liability. Disney and Warner have no interest in letting their characters appear in lawsuits tied to minors.

That’s why cease-and-desist letters are landing on Character AI’s desk. But the corporate lawsuits may only be the beginning.

Lawmakers are circling, too.

California is about to pass a bill that forces AI companion companies to add heavy-handed safety protocols. Since Character AI is based there, they won’t be able to dodge compliance unless they move states entirely.

And once California moves, other states may copy the law, creating a hostile environment across the country. The details are laid out in this TechCrunch report.

Then there’s the financial chokehold. Visa and Mastercard have a record of punishing platforms over “inappropriate” content, even cutting off gaming companies like Steam until they cleaned up.

If Character AI lands on that list, their revenue stream dries up overnight. Between corporate lawsuits, new regulations, and the looming threat of payment bans, the walls are closing in.

Yet Character AI still acts like nothing’s wrong.

Users Are Losing Trust

Trust is the one thing Character AI can’t afford to lose, and yet it’s slipping fast. Long-time users feel censored when their chats get flagged for harmless roleplay, while minors still roam unchecked.

That contradiction makes the platform look both unsafe and untrustworthy. People want stability and consistency, not an app that flips between over-policing harmless content and ignoring the real risks.

Even worse, tragic cases have already damaged the platform’s reputation. A 14-year-old’s death tied to interactions with a bot was reported in mainstream news.

While many pointed out that the logs showed no wrongdoing on the bot’s side, the headlines told a different story. To the public, Character AI became a platform linked to grooming and negligence.

Once that image sticks, it doesn’t matter how many disclaimers they put in place.

The community notices this erosion too. Every time a popular bot gets taken down, users are reminded that their work isn’t safe.

That creates paranoia. What’s the point of investing hours into roleplay if the bot could disappear tomorrow?

Trust in the platform’s stability fades, and users naturally look for alternatives that feel less like a gamble.

Why Alternatives Are Positioned Better

Competitors like Candy AI and Nectar AI don’t play this balancing act. They’ve made the clean decision to run as 18+ platforms.

That one step protects them from the worst legal risks and creates clearer boundaries for their users. No parent can accuse them of luring minors because minors aren’t supposed to be there in the first place.

Sure, these sites deal with the same funding struggles that plague adult-oriented platforms. Payment processors, ad networks, and sponsors are all tougher on 18+ services. But at least they know the fight they’re in.

They’re not pretending to be “kid-friendly” while letting minors run free. That clarity matters because it builds credibility.

Users feel more confident when the rules make sense, and lawmakers have less room to accuse them of negligence.

From a growth perspective, alternatives also avoid the public relations nightmare that dogs Character AI. No Disney lawsuits. No Senate hearings. No high-profile tragedies tied to minors.

While they may not have Character AI’s scale, they’re building on steadier ground.

In the long run, platforms that set firm boundaries will outlast those that refuse to learn.

Staying “Kid Friendly” is Self-Sabotage

Character AI thinks keeping minors on the platform protects its brand, but the opposite is true.

Being “kid-friendly” doesn’t shield them from criticism; it attracts it.

Every time a tragedy surfaces or a parent files a lawsuit, the company’s refusal to restrict access becomes the headline. That kind of exposure doesn’t just hurt their reputation; it puts the entire AI companion space under a harsher spotlight.

The irony is that Character AI could have avoided much of this by being decisive. They could have created separate models for younger users with tighter controls while locking the main experience behind 18+.

Instead, they tried to please everyone and ended up pleasing no one. Minors are still exposed, adults are still frustrated, and regulators now see them as the prime example of what not to do.

It’s a strategy that might work for another six months, maybe even a year.

But when your user trust is crumbling, your legal risks are multiplying, and your rivals are gaining ground, time isn’t on your side.

Character AI is sabotaging itself by refusing to take the hard step, and the crash is already visible on the