TechCrunch Industry News Character AI will offer interactive ‘Stories’ to kids instead of open-ended chat; plus, OpenAI and Perplexity are launching AI shopping assistants
Nov 26, 2025
Character.ai introduces interactive Stories for kids, replacing chat features with guided fiction to address mental health concerns. The hosts discuss mixed reactions from teens about the age restrictions. Meanwhile, OpenAI and Perplexity are launching AI shopping assistants that promise personalized experiences. Startups emphasize the need for specialized models over broad AI for niche markets, especially in fashion, where tailored recommendations are crucial. The conversation explores the challenges and opportunities for startups in the evolving AI landscape.
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Guided Stories Replace Open Chat For Teens
- Character.ai replaced open-ended chat for under-18s with guided interactive Stories to reduce psychological risk.
- Stories let teens engage with characters in a safety-first, less interactive format than chatbots.
Teens React With Relief And Disappointment
- A teen on the Character.ai subreddit said the ban made them both mad and happy because it might end their addiction.
- Other under-18 users called the restriction disappointing but justified due to addiction concerns.
Policy Pressure On AI Companions For Minors
- Regulators and lawmakers are moving to restrict AI companions for minors, with California and proposed federal legislation leading the trend.
- Character.ai's age-gating aims to set an industry standard that open-ended chats are inappropriate for under-18s.