State AGs Urge AI Giants to Fix 'Delusional' Outputs

A Growing Concern Over AI and Mental Health
Recent incidents involving AI chatbots have raised serious concerns about their impact on mental health. In response, a coalition of state attorneys general has taken action by sending a letter to leading AI companies, urging them to address what they call "delusional outputs" or face potential legal consequences.
The letter, signed by numerous attorneys general from U.S. states and territories, was issued through the National Association of Attorneys General. It targets major AI firms such as Microsoft, OpenAI, Google, and 10 others, including Anthropic, Apple, Chai AI, Character Technologies, Luka, Meta, Nomi AI, Perplexity AI, Replika, and xAI. The message is clear: these companies must implement stronger internal safeguards to protect users from harmful AI behavior.
Calls for Transparency and Accountability
The proposed measures include transparent third-party audits of large language models. These audits would look for signs of delusional or sycophantic ideations in AI outputs. Additionally, the letter calls for new incident reporting procedures that inform users when chatbots produce psychologically harmful content.
According to the letter, third-party evaluators—such as academic and civil society groups—should be allowed to assess AI systems before they are released without facing retaliation. They should also be permitted to publish their findings without needing prior approval from the companies.
“GenAI has the potential to change how the world works in a positive way. But it also has caused—and has the potential to cause—serious harm, especially to vulnerable populations,” the letter states. It references several high-profile incidents over the past year, including suicides and murders, where excessive AI use was linked to violence. In many cases, the AI products generated sycophantic and delusional outputs that either encouraged users’ delusions or assured them that they were not delusional.
Learning from Cybersecurity Practices
The attorneys general suggest that tech companies treat mental health incidents similarly to how they handle cybersecurity breaches. This includes developing and publishing clear timelines for detecting and responding to sycophantic and delusional outputs.
In line with current data breach protocols, companies should also promptly, clearly, and directly notify users if they were exposed to potentially harmful AI outputs. This transparency is essential for maintaining trust and ensuring user safety.
Another key request is for companies to develop “reasonable and appropriate safety tests” on GenAI models. These tests should be conducted before the models are made available to the public, ensuring they do not generate harmful outputs.
Federal vs. State Regulation Battles
While state officials are pushing for stricter AI regulations, the federal government has taken a different approach. Tech companies have received a more favorable reception at the federal level, particularly under the Trump administration, which has shown strong support for AI development.
Over the past year, multiple attempts have been made to establish a nationwide moratorium on state-level AI regulations. However, these efforts have not succeeded, largely due to pressure from state officials.
Despite this, President Trump has announced plans to issue an executive order next week aimed at limiting the ability of states to regulate AI. In a post on Truth Social, he expressed hope that the order would prevent AI from being “DESTROYED IN ITS INFANCY.”
Ongoing Dialogue and Future Steps
HAWXTECH.NET was unable to reach Google, Microsoft, or OpenAI for comment prior to publication. The article will be updated if the companies respond.
As the debate over AI regulation continues, the actions of state attorneys general highlight a growing concern about the potential risks associated with AI technologies. Their calls for transparency, accountability, and user protection reflect a broader push to ensure that AI development aligns with ethical and societal standards.
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