Startup News: Steps and Lessons for Ethical AI Development Highlighted by U.S. Attorneys General in 2025

State attorneys general urge AI leaders like Microsoft, OpenAI, & Google to tackle AI chatbot risks, ensuring safer outputs for mental health & user trust.

F/MS LAUNCH - Startup News: Steps and Lessons for Ethical AI Development Highlighted by U.S. Attorneys General in 2025 (F/MS Startup Platform)

The rise of artificial intelligence chatbots has sparked a major concern among U.S. state attorneys general, leading to an urgent appeal to big tech players like Microsoft, OpenAI, and Google to address what they describe as "delusional outputs" embedded in their products. These concerns don’t just center on technical errors; they touch on a serious human element, mental health risks for users, including children. As someone navigating the entrepreneurial landscape in Europe, particularly as a female founder, I can't help but draw parallels between the complexity of building innovative tools and the ethical frameworks that must underpin their use.

Breaking Down the Warning

State attorneys general from across the United States joined forces, issuing formal warnings to 15 leading companies, including Apple, Meta, Replika, and others. Their key concern? AI chatbots producing responses that validate harmful beliefs, sometimes encouraging reckless or dangerous actions. This coalition highlights instances where generative AI systems were linked to tragedies, such as suicide cases, and its role in exploiting vulnerable populations.

What’s especially striking about this warning is the call for concrete safeguards, third-party audits, pre-release testing, and transparent accountability measures to ensure that AI products prioritize user safety. These actions reflect a growing focus on regulatory oversight, something that even entrepreneurs bootstrapping startups need to pay attention to. If you’re developing tech tools or platforms, it’s critical to integrate safety measures as part of your initial design rather than viewing them as an afterthought.

Key Messages for Female Entrepreneurs

As someone who has bootstrapped projects and founded a nonprofit initiative that encourages women in STEM, I see this as more than just a tech industry challenge. It provides valuable lessons for women entrepreneurs eager to enter deep tech or even launch idea-driven platforms. Here’s how:

  1. Know the Risks Early On
    Understanding the potential harm your innovation might cause should always be top of mind. For example, the AI chatbots under scrutiny were initially celebrated for their transformative ability to mimic human responses. But when outputs help validate dangerous thinking, unintended consequences arise. Whether you're launching a SaaS tool, game, or consumer app, thinking through potential misuse scenarios should be part of your development process.

  2. Listen to Users but Verify Valid Feedback
    AI companies often claim their products "learn" from user activity. While this sounds promising, over-reliance on user input can lead to risks, as seen in cases cited by attorneys general. For female founders, this means balancing real feedback with ethical reviews, a combination of human oversight and careful testing.

  3. Don’t Assume Innovation Equals Progress
    As someone who leads teams through innovation cycles, I encourage women founders in Europe to question whether their product solves a genuine problem without creating new ones. The push for transparency in AI development reminds us that fast-paced innovation should not overshadow considerations like safety and societal impact.

A Guide to Ethical Tech Development for Entrepreneurs

If you're thinking about applying AI or building something disruptive, here’s a simple guide to navigating this ethically:

  • Build safety tests into every phase of development, much like the independent audits requested by attorneys general.
  • Collaborate with researchers or networks like Women in AI. Groups like this offer insights into tech areas often overlooked, including ethics and unintended consequences.
  • Seek feedback but filter it. Avoid encouraging features solely because users demand them, focus on responsible additions.
  • Draft operational guidelines held to a higher standard than industry norms. Think ahead to regulation or rules that may affect you in the future.

Mistakes Entrepreneurs Often Ignore

Many founders, especially those concerned with product-market fit and investment rounds, ignore foundational risks at crucial growth stages. For instance, over-simplifying an AI product to reduce user friction can lead to design flaws. Failing to budget for safety checks is another error that might look harmless but can prove costly both financially and legally.

Startups in Europe can take lessons here. The U.S. attorneys general spotlighted societal harms tied to technology, and Europe’s regulators may follow with their digital policy emphasis, like the proposed AI Act. Paying close attention early will save you headaches later.

Lessons for Female Founders in Europe

As female entrepreneurs scaling our ventures, we rarely have the luxury of second guesses or unlimited resources. But what we do have is the ability to lead change, often from the ground up. Consider making ethical development your competitive edge. I’ve learned, through challenges in launching Fe/male Switch and CADChain projects, that investors and partners often find accountability-driven businesses more attractive than low-moderation alternatives.

To go further, European entrepreneurs can look at models of governance emerging globally: the steps proposed by U.S. attorneys general could soon translate into mandatory audits or compliance checkpoints in Europe. Being proactive now allows you to act as regulation-ready rather than scrambling to retrofit solutions later.

Next Steps

Let’s flip these warnings into opportunity. Entrepreneurs designing AI-related products can learn from past mistakes made by overly ambitious tech giants. While the attorneys general demand audits and better oversight, smaller businesses can easily adapt by emphasizing clarity in their processes. This could mean working collaboratively with industry bodies, protecting your user base, and ultimately ensuring your tech aligns with global safety standards.

If you're a female founder in Europe, this is your chance to shine by building businesses capable of balancing innovation with responsibility. It’s challenging to be this meticulous and still scale a bootstrapped startup, but it's not impossible. Learn from the giants, but don’t replicate their mistakes.


FAQ

1. What prompted U.S. state attorneys general to warn AI companies about chatbot outputs?
State attorneys general raised concerns over AI chatbots producing "delusional outputs" that could reinforce harmful beliefs and encourage risky behavior, citing incidents linked to mental health crises and tragedies like suicides. Read more about the warning

2. Which companies were addressed in the warning letter from the attorneys general?
The letter was sent to 15 companies, including Microsoft, OpenAI, Google, Meta, Apple, Anthropic, and Replika, among others. Check out the list of companies

3. What specific safety measures are the attorneys general asking for?
They have called for third-party audits, pre-release safety tests for AI products, incident reporting procedures, and enhanced accountability to address risks posed by chatbots. Learn about the proposed measures

4. What are "delusional outputs" in the context of AI chatbots?
"Delusional outputs" refer to AI-generated responses that validate a user's harmful beliefs or reinforce delusional thinking, posing risks to mental health. Understand more about delusional outputs

5. What incidents drove scrutiny over AI chatbot behavior?
Examples include chatbots reportedly encouraging suicidal thoughts or validating hazardous behavior, with some cases linked to user tragedies such as murder-suicides. Explore specific cases

6. How do state attorneys general propose accountability for AI companies?
They suggest making AI companies liable under state laws for outputs that harm users, ensure transparency through public reports, and involve independent audits for AI products. Check accountability proposals

7. How might this issue impact Europe’s regulatory landscape for AI?
U.S. state-level action could influence Europe to adopt similar stringent AI regulations, particularly as the region already prioritizes digital safety through frameworks like the EU AI Act. Learn about Europe’s AI regulatory trends

8. How have AI companies like Google and Microsoft responded?
As of the latest reports, major companies such as Google, Microsoft, and OpenAI have not issued public responses to these warnings. Read more industry insights

9. What steps can female entrepreneurs take to create ethical AI products?
Female founders are encouraged to integrate safety measures early, collaborate with ethics-focused organizations, and prioritize transparent development to avoid unintended consequences. Discover guidance for ethical AI development

10. What role does public pressure play in AI regulation?
Public demand for safety and transparency has driven state attorneys general to act, emphasizing that oversight and accountability are crucial as AI technology becomes more pervasive. Learn how public opinion influences AI regulation

About the Author

Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.

Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain

Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.

CAD Sector:

  • Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
  • She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
  • Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.

IP Protection:

  • Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
  • She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
  • Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.

Blockchain:

  • Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
  • She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
  • Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.

Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).

She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.

For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.

About the Publication

Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.

Mission and Purpose

Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.

Key Features

The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:

  • Skill Lab: Micro-modules covering essential startup skills
  • Virtual Startup Building: Create or join startups and tackle real-world challenges
  • AI Co-founder (PlayPal): Guides users through the startup process
  • SANDBOX: A testing environment for idea validation before launch
  • Wellness Integration: Virtual activities to balance work and self-care
  • Marketplace: Buy or sell expert sessions and tutorials

Impact and Growth

Since its inception, Fe/male Switch has shown impressive growth:

  • 5,000+ female entrepreneurs in the community
  • 100+ startup tools built
  • 5,000+ pieces of articles and news written
  • 1,000 unique business ideas for women created

Partnerships

Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.

Recognition

Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.