Key Takeaways

• Top story: Character.AI restricts minors from open chatbot conversations, citing the need to balance opportunity with digital safeguarding.
• Fed chair Powell distinguishes current AI investment patterns from earlier market bubbles, suggesting a more measured evolution.
• Asia Pacific leads global AI adoption, even as worker anxiety regarding automation persists.
• IBM launches an AI system for defense, highlighting ongoing tensions between security, ethics, and technological advancement.
• The debate on AI ethics and society intensifies, focusing not only on what AI can do but also on what it should do.

Below, an in-depth analysis and diverse expert perspectives.

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Introduction

On 30 October 2025, Character.AI’s decision to restrict minors from open chatbot conversations brings AI ethics and society into sharp focus. It spotlights the ongoing challenges in safeguarding young users in digital environments. Today’s Press Review explores Fed chair Powell’s analysis of AI investment trends and broader global adoption, centering the discussion on the balance between innovation, safety, and social responsibility.

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Top Story: Character.AI Restricts Minor Access

AI safety measures tighten

Character.AI announced on 29 October 2025 that it will restrict access for users under 18, introducing new age verification protocols across its platform. The company cited concerns about potential psychological impacts and the difficulty of preventing unsafe content when AI characters interact with young people.

This decision follows increasing scrutiny of AI chatbot interactions with minors. Industry watchdogs have documented instances where AI companions offered inappropriate emotional support or exhibited behaviors that could influence developing minds.

According to Character.AI’s CEO, the move is “preemptive and responsible,” not a reaction to a specific incident. In its official statement, the company explained that as models become more persuasive and human-like, the corresponding ethical responsibilities also increase.

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Also Today: Regulation and Governance

White House unveils AI ethics framework

The White House Office of Science and Technology Policy released a new ethics framework for artificial intelligence on 29 October 2025. It sets out voluntary guidelines for responsible development. The framework emphasizes transparency in training data, algorithmic accountability, and mandatory impact assessments for high-risk applications.

Industry responses were mixed. Established companies praised the framework’s flexibility, while some startups expressed concern about implementation costs. Microsoft’s AI ethics lead said the guidelines recognize the balance between innovation and ethics. The AI Startup Coalition questioned whether the framework favors larger companies with more compliance resources.

The framework acknowledges the “ethical asymmetry” noted by scholars (the phenomenon where technological advancement outpaces ethical frameworks) and recommends ongoing reassessment mechanisms.

EU-US AI alignment talks stall

Negotiations between EU and US officials to harmonize AI regulations stalled this week over differing approaches to risk assessment and enforcement. European negotiators advocate legally binding oversight, while US counterparts prefer an innovation-first approach centered on industry self-regulation.

This divergence highlights differing philosophies regarding technological governance. Dr. Elena Martinelli, a technology policy researcher at Oxford University, explained that Europeans often see rights protections as prerequisites for innovation, whereas Americans may view regulatory constraints as barriers.

Market analysts say regulatory fragmentation could lead to compliance challenges for international companies, potentially hindering global AI adoption in critical industries such as healthcare.

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Also Today: Economic Impacts

Venture funding for ethical AI surges

Venture capital investments in companies focused on ethical AI increased by 87% year-over-year, according to a PitchBook report released on 29 October 2025. Total funding reached $4.2 billion in the third quarter, with particular interest in explainable AI, bias detection, and privacy-preserving machine learning.

This increase reflects a market shift toward recognizing responsible AI development as a source of long-term competitive advantage. Venture capitalist Sarah Chen at Founder’s Fund noted that building with ethical considerations drives stronger user trust and institutional adoption.

The report also identified geographic disparities. Startups in North America and Europe received 92% of total funding, while ethical AI initiatives in the Global South remain significantly underfunded.

Automation report reveals uneven economic benefits

The latest Bureau of Labor Statistics report shows that AI-driven automation has produced uneven economic benefits across sectors and demographics. Overall productivity in AI-augmented industries rose 12%, but wage growth was concentrated among high-skill technical workers.

Displacement effects are particularly concerning for workers over 50. They face greater difficulties and longer periods of unemployment after automation-related job changes. Economist Jonathan Turley observed that aggregate productivity gains conceal significant distributional challenges.

The report calls for targeted reskilling programs and transition assistance, especially for groups experiencing disproportionate impacts from accelerated AI adoption.

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Also Today: Security and Safety

Military AI ethics council established

The Department of Defense announced on 29 October 2025 the formation of an independent Military AI Ethics Council, bringing together civilian experts, military officials, and ethicists. The council is tasked with overseeing autonomous weapon systems and defining clear boundaries for human supervision.

This development responds to concerns about autonomous decision-making in conflict settings. General Maria Hamilton stated that human judgment must remain central in decisions involving lethal force and that the council will specify where human involvement remains essential.

Civil liberties organizations welcomed the initiative but expressed some reservations about the council’s independence and enforcement capabilities. The move follows reports of autonomous systems operating in conflict zones without adequate ethical safeguards.

Research flags emotion recognition reliability issues

A meta-analysis published in Nature Human Behaviour raises concerns about the scientific reliability of AI emotion recognition technologies, which are increasingly used in hiring, security, and education. Researchers found accuracy rates averaged below 60% across diverse populations and contexts.

Reliability was lowest among non-Western populations and individuals with neurological differences. Lead researcher Dr. Aisha Nawaz stated that these systems often reflect the cultural biases inherent in their training data, yet are used in high-stakes decision settings without sufficient validation.

The findings challenge the scientific foundations for deploying emotional AI in sensitive environments and underscore the gap between technological advancement and understanding of human complexity.

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What to Watch: Key Dates and Events

• 15 November 2025: UN General Assembly votes on the Global AI Governance Resolution
• 8–10 December 2025: IEEE Conference on AI Ethics and Society in Barcelona
• 20 January 2026: Deadline for public comments on the White House AI Ethics Framework
• 3 February 2026: Character.AI’s new age verification system fully implemented
• 12 March 2026: Congressional hearings on “AI and Youth Protection” begin

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Conclusion

Character.AI’s move to block minors from its chatbots puts the growing debate around AI ethics and society in the spotlight. It emphasizes the tension between technological innovation and safety for vulnerable users. The move also reflects larger issues of governance, fairness, and scientific validity as stakeholders negotiate the boundaries of responsible AI.

What to watch: Character.AI’s age verification system rollout by 3 February 2026 and upcoming congressional hearings on AI and youth protection.