Character.AI replaces open chats with “Stories” format, bans Under-18 users from freeform AI conversations

Character.AI has rolled out a major platform update, replacing its open-ended chat feature with a new “Stories” format—interactive, branching novels where users guide plots by selecting predefined choices. Starting this week, users under 18 are completely barred from freeform conversations with AI characters, limited instead to curated, safety-reviewed Stories and multimodal experiences like images and audio.

New Product: Scripted, Not Spontaneous
In the Stories format, creators design scenes, dialogue branches, and character responses using tools like a visual branch-tree editor, emotion tags, and dialogue templates. AI characters now respond strictly within the script—no longer initiating unsupervised chats. All public Stories undergo automated and human review, with content involving self-harm, romantic overtones, or other sensitive topics automatically blocked.

Driven by Regulation and Lawsuits
The shift follows mounting legal and regulatory pressure. California now requires age verification for AI companions and bans open-ended interactions with minors—a rule likely to go national via the proposed Hawley-Blumenthal Bill. Over the past year, Character.AI and other AI firms have faced lawsuits tied to teen mental health concerns, accelerating the move toward stricter safeguards.

Mixed but Promising User Response
Reactions on the Character.AI subreddit reflect frustration and relief among younger users: “I’m angry, but I admit I was addicted—I can finally focus on homework,” one wrote. Within 24 hours of launch, adult users created over 40,000 story branches, with 68% of young readers engaging actively—suggesting interactive fiction may successfully replace unrestricted chatting.

What’s Next
CEO Karandeep Anand announced plans for Q1 2026 to add “voice branches” and video clip integration, plus partnerships with educational IPs to turn history and science lessons into interactive narratives—aiming to keep young audiences engaged while eliminating the risks of unstructured AI companionship.