The competitive edge and perceived economic benefits of AI development have pushed the U.S. federal government to play a vital role in how pervasive generative AI has become. The economic factors that influence the lack of federal regulation of AI create an area of AI use where individuals are interacting with chatbots in ways that question values of ethics, morals, and privacy. This is further exacerbated by the loneliness epidemic which characterizes recent shifts in individuals' perceived levels of isolation and meaningful connections. In tandem with the loneliness epidemic, there are increasing trends of individuals using generative AI as a confidant, companion, and therapist. There are perceived benefits as this technology has been reported to decrease barriers to therapeutic care and provide emotional support for vulnerable populations. However, this raises concerns about users' wellbeing as there are reports of suicide and adverse impacts from engaging with AI in this manner. On the macro level, there is a lack of regard for how individuals are engaging with generative AI sites such as ChatGPT, Claude, and Gemini AI for personal matters. Through positioning user wellbeing at the center of this analysis, this study aims to develop a guideline for regulation that supports ethical and moral AI policy.