Character AI will introduce interactive ‘Stories’ for kids, replacing open-ended chats.

Character AI announced this week that it’s launching “Stories,” a new format that allows users to create interactive fiction that features their favorite characters. This feature serves as a replacement for the company’s AI chatbots, which are no longer accessible to users under 18 as of this week. The company described Stories as offering “a guided way to create and explore fiction, in lieu of open-ended chat”, representing a fundamental shift in how young people can engage with the platform. The change follows mounting concerns about the mental health risks associated with AI chatbots that operate around the clock and can initiate conversations with users. Several lawsuits have been filed against Character.AI and similar companies over their alleged connection to users’ suicides, prompting this dramatic policy reversal.

Safety-First Redesign for Youth Engagement

The Stories format is designed to be psychologically safer than traditional chatbot interactions. Unlike open-ended AI conversations where chatbots directly interact with users and can send unprompted messages even when the app isn’t actively being used, Stories provide a structured narrative experience. The company is attempting to pivot from “AI companion” to “role-playing platform,” where instead of chatting with an AI friend, teens will use prompts to collaboratively build stories or generate visuals. The feature will be offered along with other multimodal features, allowing teens to continue engaging with their favorite Characters in a safety-first setting. Character.AI has gradually phased out chatbot access for minors over the past month, implementing a two-hour daily limit that progressively shrank to zero by November 25, while deploying age verification tools including behavioral analysis, third-party verification services, and facial recognition to enforce the restriction.

Mixed Reactions and Industry Implications

The platform’s transformation has generated divided responses from its teenage user base and broader implications for the AI companion industry. On the Character.AI subreddit, some teens expressed disappointment while acknowledging the necessity of the change, with one user writing they were simultaneously angry about the ban but relieved it might help break their addiction. CEO Karandeep Anand expressed hope that “us leading the way sets a standard in the industry that for under 18s, open-ended chats are probably not the path or the product to offer”. The decision arrives as California became the first state to regulate AI companions, and federal legislation has been introduced that would ban AI companions for minors entirely. While interactive fiction has experienced a surge in popularity recently, making Character.AI’s pivot strategically sensible, questions remain about whether the new format will satisfy users who became dependent on chatbot interactions—which is precisely why limiting chatbot access was necessary in the first place.