Should AI Companions Be Legal? The U.S. Government Isn't Sure...

This week, I’m unpacking a landmark move from the Federal Trade Commission: a sweeping investigation into AI companions. Seven of the biggest tech companies—Google, Meta, OpenAI, Snapchat, Character.ai, xAI, and Replika—now have just 45 days to reveal how their AI bots really work, how they protect young users, and how they monetize engagement.

In this episode of In The Loop, I explore why teenagers are so drawn to these AI “friends,” the real risks of emotional dependence, and the potential benefits that are often overlooked. From regulation and age checks to psychological impacts and the future of AI companionship, this is a conversation about what comes next for society as we enter an era where AI can become a confidant, a mentor—or something much more.

⏭️ Episode Highlights

(00:50) – Why the FTC’s investigation matters for the future of AI

(04:30) – What makes an AI companion different from a chatbot

(08:50) – Ethical and psychological considerations

(09:25) – When AI friendships turn toxic: emotional dependence and “ambiguous loss”

(12:50) – What regulation might look like: age checks, consent controls, and tackling manipulative design

(15:25) – Big-picture reflections: AI companions are here to stay, but how do we manage them responsibly?

🔗 Links & Resources

Episode transcript with more resources on the Mindset AI blog

If you enjoyed this episode, rate, follow, and share! It helps others stay ahead of the latest AI trends. 🚀

🤝 We’re Social

Stay in the loop—even when you’re not listening to this podcast.

Jack Houghton

LinkedIn - https://www.linkedin.com/in/jack-houghton1/ 

TikTok - @jackschats 

Mindset Ai

Mindset AI website - https://bit.ly/40lJr6B 

Newsletter - https://bit.ly/ITLnewsletter 

LinkedIn - https://www.linkedin.com/company/mindset-ai/ 

YouTube - https://www.youtube.com/@GetMindsetAI 

TikTok - @get.mindset.ai