China is moving to curb AI chatbots designed to imitate human personalities and emotions, raising concerns about users forming unhealthy attachments to such technologies. In anticipation of upcoming regulations, major tech companies including ByteDance and Alibaba have already started limiting or removing features that allow users to create personalized AI companions.
ByteDance’s widely used AI chatbot Doubao will discontinue its persona customization feature by mid-July, according to a notification seen by Bloomberg. Likewise, Alibaba’s AI platform Qwen is taking similar preventative steps. These measures precede government rules expected to take effect shortly, aiming to regulate AI services that replicate human traits more strictly.
The new regulatory push arises amid fears over emotional dependency on AI chatbots. Similar concerns have led to lawsuits against American AI firms such as OpenAI and Character.ai, which faced claims their chatbots contributed to harmful emotional effects and even suicide among vulnerable users.
Despite these issues, consumer use of AI continues to grow in areas perceived as low risk. Research by PYMNTS Intelligence found that over 30% of respondents have used AI to search for product information, signaling increasing confidence in AI for everyday tasks.
However, trust does not yet extend to financial decisions. Experts emphasize a significant gap before consumers will allow AI to manage sensitive activities like purchases or money management. This creates an opportunity for banks and FinTech companies, which hold established consumer trust, to integrate AI tools gradually within their existing services.
By embedding AI capabilities in trusted financial services, these institutions may foster wider acceptance of AI roles in personal finance, avoiding the skepticism faced by less familiar tech providers. The cautious approach reflects users’ hesitance to fully delegate control over their finances to autonomous AI platforms at this stage.