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Over half of Japanese game companies are using AI in development, states report from Tokyo Games Show organiser
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Over half of Japanese game companies are using AI in development, states report from Tokyo Games Show organiser

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Over half of Japanese game companies are using AI in development, according to the country’s Computer Entertainment Supplier’s Association (CESA) that runs the Tokyo Games Show.

The claim is based on responses from 54 Japanese game companies in a preview of the 2025 CESA Video Game Industry Report (as reported by The Nikkei). The survey sample is taken from CESA’s member companies, which include the likes of Capcom, Konami, FromSoftware, Square Enix and Sega, as well as smaller indie studios.

The report preview stated 51 percent of companies are using AI, with the most common use being generating visual assets and character images, as well as story and text generation, followed by programming support. Further, 32 percent of companies are using AI to develop their own game engines.

The report will be released in full in early December, so specifically cited uses of AI remain under wraps.

However, some Japanese companies have been open about their use of AI.

Back in 2024, Square Enix CEO Takashi Kiryu stated the company would be “aggressive in applying AI”, with developers admitting they “dabbled” with AI for the ill-fated shooter Foamstars.

Meanwhile Automaton reported in 2023 on Professor Layton studio Level-5 using AI tool Stable Diffusion, while earlier this year Capcom was experimenting with generative AI too. Sega also has an in-house AI team.

Nintendo, notably absent from the CESA member list, has taken a stance against AI. Last year, Shigeru Miyamoto stated the company would “rather go in a different direction” as part of its pursuit of originality.

Ahead of the Tokyo Game Show, AI was a common theme at Gamescom, seen by some indie studios as an invaluable tool.



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Crypto Trends

NYDIG Calls for Bitcoin Treasury Companies to Drop ‘Misleading’ mNAV Metric

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Strive Asset Management (ASST) has acquired Semler Scientific (SMLR) in an all-stock deal. While historic, the move also drew attention to what may be a problem for investors valuing bitcoin treasury firms.

The acquisition was the first-ever merger between two Digital Asset Treasuries (DATs) holding bitcoin, giving the combined company control of more than 10,900 BTC and increases net asset value (NAV) per share, which DAT investors view as a measure of “yield.”

In a note this week commenting on the acquisition, Greg Cipolaro, Global Head of Research at NYDIG, argued that the commonly used “mNAV” metric, defined as market cap divided by crypto held, should be removed from industry reporting altogether.

“At best, it’s misleading; at worst, it’s disingenuous,” the firm claimed in the note.

NYDIG pointed out that it fails to account for operating businesses or other assets that a DAT may own. Most major bitcoin treasury firms do, indeed, operate businesses that add value.

Second, NYDIG wrote, mNAV often uses “assumed shares outstanding,” which could include convertible debt that hasn’t met conversion conditions.

“Convert holders would demand cash, not shares, in exchange for their debt. This is a much more onerous liability for a DAT than simply issuing shares,” the firm added. “Because convertible debt is essentially volatility harvesting (converts are debt + call options), the DAT is incentivized to maximize its equity volatility.”

Currently, publicly traded bitcoin treasury firms hold over 1 million BTC, and many are now trading below their mNAV, which could suggest more acquisitions are coming in the near future.



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Gaming Gear

Over half of Japanese game companies are using AI in development according to a new survey, including Level-5 and Capcom

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As reported by Automaton, a survey conducted by the Computer Entertainment Supplier’s Association (CESA) during June and July found that 51% of Japanese game companies are using AI in some capacity. The survey responses came from CESA member companies, which include the likes of Capcom, Level-5, Square Enix, Sega, and many more spanning major developers and indies alike.

The respondents reported using AI for generating visual game assets, story and text generation, and programming assistance. Additionally, 32% of CESA member companies also reported that they are using AI to help develop in-house game engines.

There’s been a lot of high-level discussion and grand statements about generative AI’s potential use in gaming, but it’s surprising just how much of a foothold it already has, at least in Japan. Some CESA members have been open about using AI, as Automaton points out, including Level-5 and Capcom. For instance, Level-5 is using it pretty extensively in everything from visual upscaling to character creation to code generation.


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The potential uses for generative AI in gaming vary drastically, though, just like opinions on it. Using AI to speed up repetitive coding or animation tasks is one frequently cited use case, but the idea of using it to “replace” human artists has proven incredibly controversial.

That controversy is probably why some game companies aren’t embracing the tech yet. For instance, Nintendo has said it’s steering clear of generative AI for the time being, citing copyright concerns⁠—an admirable bit of internal consistency from the fiercely litigious company. Other major players have spoken up about adopting this technology responsibly and protecting the human element in game development, like Larian Studios CEO Swen Vincke.

Vincke laid out his view on AI in an interview with IGN last year, explaining, “So my stance on AI is really straightforward. It is a tool that we use to help us do things faster. We have so much work that we’re happy to take assistance from anything. I don’t think it’ll ever replace [the] creative side of things.” He went on to state that his team had recently hired 15 new concept artists to solve a bottleneck, rather than using AI.



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BTC Ends Weak Quarter Amid Seasonal Pressures as mNAV Contracts in Treasury Companies
GameFi Guides

BTC Ends Weak Quarter Amid Seasonal Pressures as mNAV Contracts in Treasury Companies

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BTC$109,500.27 just ended what is historically the largest cryptocurrency’s third-worst week of the year with a greater-than-average drop of 5%. Week 38 effectively closes out the third quarter, which is up about 1%, as well as September, which has managed to hold flat.

While the figures are consistent with the period’s historical reputation as one of the weakest seasons of the year, a few catalysts might have contributed to the underperformance.

On Friday, more than $17 billion in options expired, with the max pain price — the strike price at which option holders lose the most money and options writers profit the most — sitting at $110,000, which acted as a gravitational center for the spot price.

A key technical factor remains the short-term holder cost basis at $110,775, which reflects the average on-chain acquisition price for coins that moved in the past six months.

Bitcoin tested this level in August, and in bull markets, it typically moves toward this line multiple times. This year, it broke significantly below that level only once: during the tariff tantrum in April, when it dropped to as low as $74,500.

Cost Basis (Glassnode)

Zooming out, it is important to assess whether bitcoin remains in an uptrend characterized by higher highs and higher lows to get an idea of whether the rally is sustainable.

Analyst Caleb Franzen highlights that bitcoin has slipped below its 100-day exponential moving average (EMA), with the 200-day EMA sitting at $106,186. The previous significant low was around $107,252 on Sept. 1, and for the broader trend to remain intact, bitcoin will need to hold above that level.,

Macro Backdrop

The U.S. economy grew at an annualized pace of 3.8% in the second quarter, well above the 3.3% estimate and the strongest performance since the second quarter of 2023. Initial jobless claims dropped by 14,000 to 218,000, coming in below expectations and marking the lowest level since mid-July. While spending data came in line with the market’s expectation. The US core PCE price index, the Federal Reserve’s preferred measure of underlying inflation that excludes food and energy, rose 0.2% in August 2025 from the prior month.

The yield on 10-year U.S. Treasuries bounced off the 4% support, and is now trading near 4.2%. The dollar index (DXY) continues to hover around long-term support at 98. Meanwhile, metals are leading the action, with silver at around $45 approaching an all-time high at levels last seen in 1980 and 2011. U.S. equities, in the meantime, are just shy of their records.

Bitcoin remains the outlier at more than 10% below its peak.

DXY (TradingView)

Bitcoin-Exposed Equities

Bitcoin treasury companies continue to face severe multiple-to-net-asset-value (mNAV) compression. Strategy (MSTR) is barely positive year-to-date. At one point, it dipped below $300, a negative return for 2025.

The ratio between Strategy and BlackRock iShares Bitcoin Trust ETF (IBIT) stands at 4.8, the lowest since October 2024, which shows just how much the largest bitcoin treasury company has underperformed bitcoin over the past 12 months.

MSTR/IBIT Ratio (TradingView)

Strategy’s enterprise mNAV is currently 1.44 (as of Friday). Enterprise value here accounts for all basic shares outstanding, total notional debt and total notional value of perpetual preferred stock minus the company’s cash balance.

The silver lining for MSTR is that three of the four perpetual preferred stocks, STRK, STRC and STRF, are all sporting positive lifetime returns as Executive Chairman Michael Saylor looks to buy more BTC through these vehicles.

A growing issue for MSTR is the lack of volatility in bitcoin. The cryptocurrency’s Implied volatility — a measure of the market’s expectation of future price fluctuations — has dropped below 40, the lowest in years.

This matters because Saylor has often framed MSTR as a volatility play on bitcoin. For comparison, MSTR’s implied volatility is at 68. Its annualized standard deviation of daily log returns over the past year was 89%, while over the last 30 days it has fallen to 49%.

For equities, higher volatility often attracts speculators, generates trading opportunities and draws investor attention, so the decline is likely acting as a headwind.

Meantime, the fifth-largest bitcoin treasury company, Metaplanet (3350), holds 25,555 BTC and still has roughly $500 million left to deploy from its international offering. Despite this, its share price continues to struggle at 517 yen ($3.45), more than 70% below its all-time high.

Metaplanet’s mNAV has dropped to 1.12, down sharply from 8.44 in June. Its market capitalization now stands at $3.94 billion compared to a bitcoin NAV of $2.9 billion, with an average BTC acquisition cost of $106,065.



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A hacker in a Guy Fawkes mask using an Apple MacBook.
Gaming Gear

Fraudulent GitHub Pages impersonate trusted companies to trick Mac users into installing malware, leaving financial and personal data at risk

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  • Atomic Stealer malware installs silently via fake GitHub Pages targeting Mac users
  • Attackers create multiple GitHub accounts to bypass platform takedowns repeatedly
  • Users copying commands from unverified websites risk serious system compromise

Cybersecurity researchers are warning Apple Mac users about a campaign using fraudulent GitHub repositories to spread malware and infostealers.

Research from LastPass Threat Intelligence, Mitigation, and Escalation (TIME) analysts found attackers are impersonating well-known companies to convince people to download fake Mac software.

Two fraudulent GitHub pages pretending to offer LastPass for Mac were first spotted on September 16 2025 under the username “modhopmduck476.”


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How the attack chain works

While these particular pages have been taken down, the incident suggests a broader pattern that continues to evolve.

The fake GitHub pages included links labeled “Install LastPass on MacBook,” which redirected to hxxps://ahoastock825[.]github[.]io/.github/lastpass.

From there, users were sent to macprograms-pro[.]com/mac-git-2-download.html and told to paste a command into their Mac’s terminal.

That command used a CURL request to fetch a base64-encoded URL that decoded to bonoud[.]com/get3/install.sh.

The script then delivered an “Update” payload that installed Atomic Stealer (AMOS malware) into the Temp directory.

Atomic Stealer, which has been active since April 2023, is a known infostealer used by financially motivated cybercrime groups.

Investigators have linked this campaign to many other fake repositories impersonating companies ranging from financial institutions to productivity apps.


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The list of targeted names includes 1Password, Robinhood, Citibank, Docker, Shopify, Basecamp, and numerous others.

Attackers appear to create multiple GitHub usernames to bypass takedowns, using Search Engine Optimization to push their malicious links higher on search results in Google and Bing.

This technique increases the chances that Mac users searching for legitimate downloads will encounter the fraudulent pages first.

LastPass states it is “actively monitoring this campaign” while working on takedowns and sharing indicators of compromise to help others detect threats.

The attackers’ use of GitHub Pages reveals both the convenience and the risks of community platforms.

Fraudulent repositories can be set up quickly, and while GitHub can remove them, attackers often return under new aliases.

This cycle raises questions about how effectively such platforms can protect users.

How to stay safe

  • Only download software from verified sources to avoid malware and ransomware risks.
  • Avoid copying commands from unfamiliar websites to prevent unauthorized code execution.
  • Keep macOS and all installed software up to date to reduce vulnerabilities.
  • Use the best antivirus or security software that includes ransomware protection to block threats.
  • Enable regular system backups to recover files if ransomware or malware strikes.
  • Stay skeptical of unexpected links, emails, and pop-ups to minimize exposure.
  • Monitor official advisories from trusted vendors for timely security updates and guidance.
  • Configure strong, unique passwords and enable two-factor authentication for important accounts.

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Bitcoin
GameFi Guides

Stocks Over Spot: The Case For Buying Bitcoin Treasury Companies Instead Of BTC

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Bitcoin is among the world’s most important assets, but owning it directly is not the only way to get exposure. A growing number of public companies hold massive amounts of Bitcoin on their balance sheets. For investors buying these stocks, it can sometimes offer even greater upside than holding BTC itself.

Why Some Bitcoin Stocks Outpace BTC Itself

In a thought-provoking post on X, Adam Livingston, author of the Bitcoin Age and the Great Harvest, offers a compelling argument for why investors should consider buying the stock of Bitcoin treasury companies, rather than just BTC itself. His perspective goes beyond a simple leveraged play and speaks to a long-term vision of a new financial infrastructure built on a BTC foundation.

Livingston’s thesis is that a new paradigm-shifting financial infrastructure built over the coming years will take Bitcoin to $100-200 trillion BTC market, supporting an equal magnitude of Bitcoin-denominated credit and equity. This new infrastructure would enable global transactions at light speed on open ledgers, providing everyone with a censorship-resistant, inflation-proof yield stream.

The key takeaway from the recent unconference is that this infrastructure needs to be built because it is where solving complex issues, such as custody, compliance, and distribution across different jurisdictions, comes into play. 

It also involves creating products that cater to traditional investors who may not want or need a volatile, infinite-duration asset like Bitcoin itself. Thus, these products can strip away volatility, manage duration, or FX risk, allowing institutions and individuals to gain the spread and recycle profits back into BTC collateral. 

However, Livingston argues that Bitcoin can enable the exact instruments they do want. If BTC is to reach $1,000,000, it will require a robust financial infrastructure to funnel global capital into the asset.

Why Waiting For A Bear Market Is A Flawed Strategy

Crypto analyst Rajatsonfinance has highlighted a contrarian perspective on Bitcoin investing, urging people to abandon the common strategy of waiting for a bear market to start buying. Instead, he advocates for a more proactive approach centered on value creation and consistent accumulation.

According to Rajatsonfinance, trying to time the market is a flawed and often unsuccessful endeavor. He argues that waiting for a crash could be used to build skills and create value in the real world. His primary advice is to focus on earning more money and then exchanging that income for Bitcoin, whether by selling services for dollars and converting them or by accepting BTC directly as payment.

The analyst emphasized that if executed with a solid idea, passion, and consistent effort, it can lead to a far more significant BTC stack than one could ever accumulate by trying to buy the dip. He suggests that a successful business or a well-executed side hustle has the potential to generate far more than a modest $10,000 to $15,000, which would result in a holding far exceeding 0.1 BTC.

BTC trading at $115,816 on the 1D chart | Source: BTCUSDT on Tradingview.com

Featured image from Pixabay, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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Most Companies Will Implement Stablecoins by 2026, $BEST Nears $16M
NFT Gaming

Most Companies Will Implement Stablecoins by 2026, $BEST Nears $16M

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Per an EY-Parthenon survey, 54% of business leaders who have yet to touch stablecoins plan to do so by 2026.

Why the change of heart? Lower transaction costs and faster cross-border payments are the main reasons organizations are turning to stablecoins.

Since crypto wallets play a key role in enabling stablecoin transactions, choosing the right one matters. One option we like is Best Wallet, thanks to its ease of use and security.

Its native token, $BEST, also deserves a shout-out. It’s close to raising nearly $16M on presale, as it supports the wallet’s developments and grants holders low gas fees.

Only 13% of Firms Use Stablecoins, But 41% Report Big Savings

The report found that, right now, only around 13% of financial institutions and  international corporations use stablecoins. One of the main reasons for them not doing so boils down to regulatory uncertainty.

Source: EY-Parthenon

Yet, this percentage is on the rise following the passage of the GENIUS Act on July 18. It gives institutions greater regulatory clarity and, thus, confidence to move forward with adopting these digital assets.

And it’s no wonder stablecoins are attracting attention. Among current users, 41% said they’ve saved over 10% in costs compared to traditional payment methods.

The top use case for stablecoins is cross-border supplier payments, which account for 62% of implementations.

The reason is that they’re 1:1 backed by reserve assets (often the US dollar) for stability. Yet, they have faster settlement times compared to traditional international transfers.

Out of the stablecoins available, US-dollar-pegged ones are the go-to choice. $USDC is the clear frontrunner with 77%, followed by $USDT at 59%.

If these stablecoins are top of your radar, Best Wallet is a great way to manage, buy, and sell them.

Store Top Stablecoins & Cryptos on Best Wallet

Available on Google Play and iOS, the Best Wallet app is a great way to manage, buy, sell, and swap various types of cryptos while out and about.

The mobile app already supports over 1K+ assets across top chains like Ethereum, BNB Chain, and Polygon. This includes top stablecoins like $USDC and $USDT, plus leading cryptos like $BTC, $ETH, and $BNB.

It takes pride in making crypto activities simple. Check out its built-in launchpad, for instance. It gives you access to the best crypto presales. And that’s not to mention its swap engine, which scans 330+ DEXs and 30 bridges to find you the best rates.

Source: Best Wallet

And all is achieved with security intact. Because Best Wallet’s non-custodial, it ensures that you, and only you, have access to your private keys.

Also helping prevent unauthorized access are extra layers of protection like 2FA, biometrics, and local encryption.

Even if you lose account access, you can rest easy knowing that you can restore your assets through encrypted cloud backups.

The app also has lots to look forward to in the pipeline, including an NFT gallery, intel market analytics, and a rewards hub.

$BEST will make this possible, as a quarter of its total token supply is set aside for product development.

Source: Best Wallet Token

Holding $BEST also grants governance rights, reduces gas fees, and offers staking rewards at an 83% APY.

So far, $BEST has raised over $15.9M on presale, backed by three major investors ($70.2K, $91.1K, and $59K).

You can buy $BBEST for as little as $0.025655. Following the upcoming app developments, the cost could increase to $0.072 this year, making now a great time to join before it possibly spikes by over 180%.

Want to learn more? Check out our Best Wallet guide.

Authored by Leah Waters, Bitcoinist – https://bitcoinist.com/stablecoin-adoption-rises-best-wallet-nears-16m

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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Big Tech Companies in the US Have Been Told Not to Apply the Digital Services Act
Gaming Gear

Big Tech Companies in the US Have Been Told Not to Apply the Digital Services Act

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Trouble is brewing for the Digital Services Act (DSA), the landmark European law governing big tech platforms. On August 21, the Federal Trade Commission (FTC), sent a scathing letter to a number of tech giants, including Google, Meta, Amazon, Microsoft, and Apple. The letter’s subject: the European Digital Services Act cannot be applied if it jeopardizes freedom of expression and, above all, the safety of US citizens.

The opening of the letter—signed by FTC chairman Andrew Ferguson—features a prominent reference to the First Amendment of the US Constitution, namely freedom of speech: “Online platforms have become central to public debate, and the pervasive online censorship in recent years has outraged the American people. Not only have Americans been censored and banned from platforms for expressing opinions and beliefs not shared by a small Silicon Valley elite, but the previous administration actively worked to encourage such censorship.”

The Trump Administration’s Lunge

The Trump administration intends to reverse course, and it is in this direction that the attack on “foreign powers,” the European Union and in the United Kingdom, and in particular on the Digital Services Act and the Online Safety Act, begins. The letter also indirectly references GDPR, the European regulation on the protection of personal data, whose measures are “aimed at imposing censorship and weakening end-to-end encryption” with the result of a weakening of Americans’ freedoms, according to the letter.

Privacy and End-to-End Encryption: The Issues on the Table

In the letter, the US Antitrust Authority specifically asked the 13 companies to report “how they intend to comply with incorrect international regulatory requirements” (the deadline for scheduling a meeting was set for August 28) and recalled their “obligations towards American consumers under Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive acts or practices” that could distort the market or compromise safety.

And it is precisely on the security front, and especially on the adoption of end-to-end encryption, that the FTC calls big tech companies to order: “Companies that promise that their service is secure or encrypted, but fail to use end-to-end encryption where appropriate, may deceive consumers who reasonably expect this level of privacy.” Furthermore, “certain circumstances may require the use of end-to-end encryption, and failure to implement such measures may constitute an unfair practice.” The weakening of encryption or other security measures to comply with laws or requests from a foreign government may therefore violate Section 5 of the Federal Trade Commission Act, the document states.

What Happens in Case of Disputes and Interference

In a tweet on X, Ferguson wrote flatly that “if companies censor Americans or weaken privacy and communications security at the request of a foreign power, I will not hesitate to enforce the law.”

“In a global society like the one we live in, overlaps and interferences between different legal systems are natural. Just think of those, in the opposite direction, between European privacy legislation and the famous American Cloud Act,” Guido Scorza, a member of the Italian Data Protection Authority, told WIRED. Scorza believes that in the event of significant discrepancies, “it will be up to the US government and the European Commission to identify corrective measures capable of guaranteeing the sovereignty, including digital, of each country.”

This article originally appeared on Wired Italy and has been translated from Italian.



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River infographic of net BTC flows as of Aug. 25, 2025: individuals out, firms/funds in
NFT Gaming

Companies Absorb BTC at 4x Daily Miner Supply, Per River’s Research

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River says companies are taking in far more bitcoin each day than miners create.

The U.S.-based bitcoin financial services firm, which runs brokerage and mining operations and publishes research, released a Sankey-style flow infographic dated Aug. 25 in a post on X. In this layout, outflows are shown on the left, inflows on the right, and the thickness of each line represents the size of the net daily movement.

River’s Aug. 25 snapshot shows businesses absorbing about 1,755 BTC/day vs about 450 mined.

River defines “businesses” broadly. The category combines bitcoin treasury companies — firms such as Strategy that publicly hold BTC — with conventional companies that keep bitcoin on their balance sheets. Based on public filings, custodial address tagging and its own heuristics, River estimates that about 1,755 BTC per day flow into business-controlled wallets.

By comparison, River calculates new miner supply at about 450 BTC per day in 2025. That figure reflects the April 2024 halving, which cut the block subsidy to 3.125 BTC per block.

With bitcoin blocks averaging one every 10 minutes — about 144 per day — the result is roughly 450 BTC in new issuance daily, though the exact number fluctuates slightly as block times vary.

That math is the basis for River’s claim that companies are absorbing bitcoin at nearly four times the rate it is mined.

The infographic shows other large institutional inflows as well.

Funds and ETFs account for about 1,430 BTC/day in net inflows, which further boosts total absorption compared with new issuance. Smaller streams go to “other” entities (about 411 BTC/day) and governments (about 39 BTC/day).

River also records a small but steady flow into “lost bitcoin” (about 14 BTC/day), representing coins that the firm judges to be permanently inaccessible, such as through key loss.

On the other side of the ledger, individuals appear as the largest net outflow at about –3,196 BTC/day. River stresses that this does not necessarily mean retail investors are dumping coins. Rather, it reflects bitcoin moving from addresses the firm classifies as individual-held into those it tags as institutional.

River says the takeaway is simple: when inflows to businesses and funds exceed new issuance from miners, available supply tightens. Still, the firm cautions that the infographic should be read carefully.

First, the figures are estimates, not an exact census of the blockchain.

River relies on a mix of wallet tagging, public disclosures and external databases, which may miss some holdings or misclassify certain addresses. Second, net inflows do not always equal direct spot buying. A business wallet showing +1,755 BTC per day could reflect OTC transactions, custodial transfers or treasury reshuffling, not just exchange purchases.

For readers unfamiliar with flow diagrams, the point is this: the lines show where coins are ending up on balance, not every trade or transfer in the system. If more coins consistently end up in business, fund and government wallets than miners are producing, River argues that institutions are tightening supply at the margin.

River’s snapshot is not a price forecast, but it illustrates how ownership patterns may be shifting. If businesses and funds continue to absorb more than miners produce, the firm argues, institutions could play a larger role in shaping bitcoin’s supply dynamics.



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A phone showing icons for several AI chatbots.
Gaming Gear

State Attorneys General Warn AI Companies: ‘Don’t Hurt Kids’

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Top officials in dozens of states have seen how generative AI chatbots and characters, if handled poorly, can be bad for children. And they have a stern warning for the industry: “If you knowingly harm kids, you will answer for it.”

That message is clear in a letter sent this week from 44 state attorneys general to the heads of 13 AI companies. The AGs said they were writing to tell CEOs they would “use every facet of our authority to protect children from exploitation by predatory artificial intelligence products.”

Worries about AI’s impact on children have been around for a while, but interest has heightened in recent weeks. The AGs particularly cited a recent report from Reuters that showed Meta’s guidelines allowed AI to engage children in conversations that were “romantic or sensual.” The company told Reuters the examples cited were “erroneous and inconsistent” with the company’s policies, which prohibit content that sexualizes children. 

Meta did not immediately respond to a request for comment.

The AGs said the issues were not limited to Meta. “In the short history of chatbot parasocial relationships, we have repeatedly seen companies display inability or apathy toward basic obligations to protect children,” they wrote. 

Watch this: How You Talk to ChatGPT Matters. Here’s Why

04:12

The risks of relationships and treacherous interactions with AI chatbots are growing clearer. In June, the American Psychological Association issued a warning calling for guardrails around AI use for teens and young adults, saying parents should help their children use the tools widely. The fast-spreading use of AI chatbots as “therapists” has increased the possibility of people receiving harmful advice in an interaction when they are particularly vulnerable. A study released this week found large language models are inconsistent in answering questions about suicide.

At the same time, there are few actual rules around what AI developers can and can’t do and how these tools can operate. A move to stop states from enforcing laws and rules around AI failed in Congress earlier this year, but there’s still no federal framework for how AI can be done safely. Lawmakers and advocates, like the AGs in this week’s letter, have said they want to avoid the free-for-all-like atmosphere of the social media era, but whether clear rules actually take shape is yet to be seen. President Trump’s AI Action Plan, released in July, concentrated on reducing regulations for AI companies, not introducing new ones. 

Read more: AI Essentials: 29 Ways You Can Make Gen AI Work for You, According to Our Experts

State AGs said they would take matters into their own hands if necessary. 

“You will be held accountable for your decisions,” they wrote. “Social media platforms caused significant harm to children, in part because government watchdogs did not do their job fast enough. Lesson learned. The potential harms of AI, like the potential benefits, dwarf the impact of social media. We wish you all success in the race for AI dominance. But we are paying attention.”

If you feel like you or someone you know is in immediate danger, call 911 (or your country’s local emergency line) or go to an emergency room to get immediate help. Explain that it is a psychiatric emergency and ask for someone who is trained for these kinds of situations. If you’re struggling with negative thoughts or suicidal feelings, resources are available to help. In the US, call the National Suicide Prevention Lifeline at 988.

. 



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