California Regulates AI Chatbots

California has become the first state to regulate AI companion chatbots with Senate Bill 243. The law seeks to protect children and vulnerable users from potential harm. Effective January 1, 2026, the bill mandates that chatbot operators implement measures to prevent the generation of content related to suicide or self-harm, including providing resources like crisis hotlines. Operators must disclose that users are interacting with AI, not a human, with minors receiving reminders every three hours. The legislation also requires reasonable measures to prevent sexually explicit content.

SB 243 requires companies to implement age verification and disclose the artificial nature of the interactions. Chatbots are prohibited from posing as healthcare professionals. The law introduces a private right of action, allowing those harmed by violations to sue for damages. The bill reflects an effort to balance technological advancement with child safety, addressing concerns about the impact of AI on vulnerable individuals.

While some groups withdrew support due to industry-friendly exemptions, the bill signifies a move towards AI accountability and user protection. Other tech regulations were signed into law alongside SB 243, including measures addressing social media warning labels, age verification, and AI-generated explicit content.