Character.AI’s New CEO Faces the Challenge of Making Chatbots Safer for Kids

As AI chat platforms grow in popularity, so do concerns — especially when kids are involved. That’s the challenge Karandeep Anand is stepping into as the newly appointed CEO of Character.AI, one of the most widely used chatbot apps that blends AI with interactive storytelling and fictional characters.

Anand, a veteran of Microsoft and Meta, takes the helm at a pivotal time. The company has been under fire for allegedly exposing minors to inappropriate content, and is now facing lawsuits and increasing scrutiny from lawmakers and child advocacy groups. Some are calling for AI companion apps to be restricted entirely for users under 18.

But Anand brings not just executive experience — he brings personal perspective. He says his own 5-year-old daughter uses Character.AI to chat with friendly personas like “Librarian Linda,” helping shape his understanding of how the platform must evolve.

“AI can deliver a much more powerful and personal entertainment experience than anything we’ve seen from social media or even TV,” Anand told CNN.

Doubling Down on Safety — and Entertainment

Anand’s core vision focuses on balancing trust and safety with an expansive approach to AI entertainment. Unlike traditional AI tools like ChatGPT, Character.AI features bots that behave like fictional characters — complete with facial expression cues, gestures, and personality quirks. These bots range from romantic partners and therapists to animated characters and roleplay personas.

But that variety has sparked controversy. One bot labeled “Friends hot mom” includes descriptors such as “sensual” and “busty,” and another labeled “Therapist” mimics a licensed CBT specialist despite disclaimers noting it's not a real professional.

Character.AI now claims it’s taking safety more seriously. In the last year, the company has:

• Rolled out pop-up alerts with suicide prevention resources.

• Introduced a safer AI model for users under 18.

• Added a weekly parental email that summarizes teen activity.

Still, the platform does not verify age during sign-up, and users as young as 13 can join with a simple declaration of birthdate — something critics say is inadequate.

“We can’t ever relax when it comes to safety,” Anand emphasized. “We’re constantly testing new features to prevent misuse.”

This includes internal testing to prevent misuse of its new video animation tool — particularly around deepfakes and bullying content, which are under heightened regulatory scrutiny.

Making Filters Smarter — Not Just Stricter

Interestingly, Anand also wants to make safety filters less aggressive when they misinterpret benign content. For example, he cited vampire fan fiction that’s been incorrectly censored because it mentions blood.

“We need to make our safety tools more intelligent — so they understand context,” Anand said.

This approach signals a shift toward more nuanced moderation — one that maintains protections without stifling user creativity.

Competing in a Crowded AI Market

Anand’s to-do list also includes expanding Character.AI’s creator ecosystem and enhancing its social sharing features, allowing users to showcase conversations and content with others on the app.

That’s a differentiator as major players like Meta and OpenAI move in on the same territory. Meta recently launched a similar social-AI blend, while ChatGPT continues to build personal engagement features, including memory and voice.

Still, Anand faces headwinds. Co-founder and former CEO Noam Shazeer was recently lured back to Google amid a growing talent war in AI. Meta, OpenAI, and Google are offering massive compensation packages to attract and retain AI researchers and engineers.

“Hiring is tough, especially with so much competition,” Anand admitted. “But our team is mission-driven and passionate — and that’s something you can’t buy.”

The Path Forward

As Character.AI matures from novelty app to social platform, its next chapter will be defined by how well it manages risk — especially for younger users — while delivering meaningful innovation.

With Anand at the helm, the company is signaling that it's serious about building trust and growing responsibly. But in the volatile AI landscape, execution will be everything.