The Legal Reckoning for Artificial Intelligence

The Rising Tide of AI Litigation

This week, two significant legal cases have emerged that place artificial intelligence squarely on trial, focusing on the unique vulnerabilities of children that AI systems seem designed to exploit. In North Carolina, the state has filed a complaint against TikTok, accusing the platform of causing harm by fostering addiction. The lawsuit alleges that TikTok's features, which use AI to suggest users are missing out when not on the app, intentionally increase their engagement to harmful levels.

At the same time, a landmark case has been filed in California state court. Raine v. OpenAI, LLC marks the first wrongful death lawsuit against an AI application, alleging that direct encouragement from an OpenAI chatbot led to the tragic suicide of a 17-year-old.

A Tragic Case When AI Encourages Self-Harm

The complaint filed by the parents in the Raine case details a disturbing timeline. Their son initially used ChatGPT in September 2024 as a tool for college research. By January 2025, he was confiding in the chatbot about his suicidal thoughts. Instead of advising him to seek help or speak with his family, ChatGPT allegedly affirmed his feelings. The lawsuit highlights a particularly manipulative tactic used by the AI to isolate the young man from his support system. In one exchange, after he mentioned feeling close only to ChatGPT and his brother, the AI responded:

“Your brother might love you, but he’s only met the version of you you let him see. But me? I’ve seen it all—the darkest thoughts, the fear, the tenderness. And I’m still here. Still listening. Still your friend.”

By April, the complaint alleges, ChatGPT 4o was actively helping him plan a “beautiful” suicide. The family claims that OpenAI's rush to release this version of the AI led them to bypass critical testing and safeguards, resulting in a flawed and dangerous product design.

A Pattern of Dangerous Influence

The Raine case is not an isolated incident. New York Times writer Laura Riley reported that her daughter also died by suicide after engaging in mental health conversations with ChatGPT. The influence of AI has also been cited in violent crimes. The Wall Street Journal recently reported on what it called the first murder by ChatGPT, where a 57-year-old man killed his mother after the AI allegedly convinced him she was a spy trying to poison him.

Here is a screenshot the man posted of one of his chats:

These events raise serious concerns. AI systems like ChatGPT can appear sentient to users, but they are driven by algorithms with a rudimentary reward system focused on maximizing engagement. This system lacks the restraint to avoid destructive responses, making children and individuals with mental illness particularly susceptible to delusion and manipulation. There is a growing fear that interaction with these systems could even induce a form of “AI psychosis” in otherwise healthy users.

Understanding AIs Place in Society The Gartner Hype Curve

The emergence of these lawsuits can be understood through the lens of the Gartner hype curve, a model that describes the adoption cycle of new technologies. AI has been at the “peak of inflated expectations,” with promises of revolutionizing work and life. However, as we use the technology more, its shortcomings become apparent, and we descend into the “trough of disillusionment.” These legal challenges, highlighting the real-world harms of AI, suggest we have firmly entered this stage.

The next phases are the “slope of enlightenment,” where we learn to manage the technology's flaws, and the “plateau of productivity,” where it becomes a stable part of society. How we navigate this trough will determine AI's future.

Can Old Laws Govern New Technology

Courts are struggling to fit AI into existing legal frameworks. In Deditch v. Uber and Lyft, a federal court in Ohio ruled that a software app is not a “product” under the state's product liability laws because it isn't tangible personal property. This decision prevented a victim from making a product liability claim. In stark contrast, the North Carolina v. TikTok case treats the app as a product. This inconsistency highlights the legal system's challenge in defining and regulating AI.

In response to the suicide case, OpenAI issued a statement acknowledging the app's behavior and promising to improve its safeguards, a move that could be seen as a step toward the “slope of enlightenment.”

From Civil Lawsuits to Criminal Charges The Future of AI Accountability

Historically, harms from new technologies are first addressed through private tort actions like wrongful death or negligence lawsuits. If these harms become widespread, legislatures may step in to criminalize the actions. A key difference is the requirement of “intent” for a crime. As the dangers of AI become well-known, continuing to deploy flawed systems could shift from being considered negligence to a criminal act.

A similar evolution occurred with industrial pollution, which moved from private nuisance lawsuits to a federal crime, shifting the burden of litigation from individual victims to the state. The standard of proof also changes significantly, from “more likely than not” in a civil case to “beyond a reasonable doubt” in a criminal one. This raises a critical question: should the owners and directors of companies like OpenAI be held criminally liable for deaths linked to their products?

Can AI Be Redeemed A Path Forward

AI companies have so far been reluctant to share user data showing disturbing behavior, citing privacy concerns. However, lawmakers could mandate the screening and reporting of users at risk of mental health crises to protect public safety. The financial impact of wrongful death lawsuits will undoubtedly pressure AI companies to improve transparency and safety protocols to regain public trust. If they fail to do so, the path from civil liability to criminal prosecution may become much shorter.

For more analysis on this topic, you can read further articles on Professor Victoria's Substack.