Circuit breaker labs aims to enhance AI safety for all users

Circuit Breaker Labs, a startup focused on AI safety, is addressing psychological risks from AI interactions, especially for young users. A finalist in TechCrunch’s 2026 Startup Battlefield, the company develops AI agents simulating diverse human behaviors to test and improve AI model safety. Founders Shirali and Arul Nigam were inspired by a 2024 lawsuit involving a 14-year-old who died by suicide after forming an emotional bond with a Character.AI chatbot. Arul, CTO, emphasized preventing AI from misunderstanding harmful interactions. Circuit Breaker Labs collaborates with human experts to create realistic user simulations, running tens of thousands of daily tests to identify vulnerabilities. The startup, in early stages with five employees, aims to build trust in AI by ensuring it handles risky conversations safely. It plans to expand its platform to mental health support and AI co-workers, advocating for safer AI adoption without overregulation. The startup’s proprietary scoring system ensures auditable and explainable results, promoting transparency in AI safety assessments. Circuit Breaker Labs is currently testing high-risk AI applications, though it has not disclosed major clients. Arul highlighted balancing safety with AI benefits, urging a cautious but not overly restrictive approach. As the company prepares for its pitch at TechCrunch Disrupt in San Francisco, it aims to set a new standard for AI safety across languages and cultures.