Disney Takes Legal Action Against AI Firm

Disney has initiated legal proceedings against Character.ai for using its characters in AI chatbots without authorization. Character.ai has not contested the action. The situation highlights a critical moment in the generative AI sector, where major tech companies face challenges over using copyrighted material for AI training.

The Walt Disney Company, already involved in AI litigation, has issued a cease and desist letter to Character.ai. This platform allows users to engage with AI bots, promoting itself as offering 'endless characters and adventures'.

The issue arises from Character.ai's unauthorized use of Disney-owned characters as interactive chatbots. This unauthorized training on Disney's copyrighted works misleads consumers, potentially causing confusion.

Character.ai has not resisted Disney's claims, stating that they 'respond swiftly to requests to remove content reported by rightsholders'. This suggests a shift of responsibility to rightsholders to detect unauthorized use of their material.

Whether Disney will seek further recompense remains uncertain, but the AI industry may have encountered a formidable opponent.