On October 14, 2026, a coalition of 40 state Attorneys General filed a Notice of Interest and Reservation of Rights in the bankruptcy proceeding involving debtor, Character Technologies, Inc. (Character) regarding its product Character.AI’s “outstanding regulatory, safety and privacy issues.”

According to the Notice, Character “designed, built, and distributed Character.AI, an artificial intelligence consumer…

In an excellent blog post, “Avoiding AI Pitfalls in 2026: Lessons Learned from Top 2025 Incidents,” ISACA’s Mary Carmichael summarizes lessons learned from top incidents in 2025 using MIT’s AI Incident Database and risk domains. According to Carmichael, an analysis of the incidents showed recurring patterns across different risk domains, including privacy, security…

A new US National Cybersecurity Alliance survey  shows that over one-third (38%) of “employees share sensitive work information with artificial intelligence (AI) tools without their employer’s permission.” Not surprisingly, “Gen Z and millennial workers are more likely to share sensitive work information without getting permission.”

The problem with employees sharing workplace data with chatbots is…