A bill in California aimed at regulating AI companion chatbots is nearing the final stages of becoming law.
California has made significant progress in regulating AI. SB 243 — a legislation aimed at overseeing AI companion chatbots to safeguard minors and vulnerable individuals — has successfully passed through both the State Assembly and Senate with support from both parties and is now on its way to Governor Gavin Newsom’s desk.
California has made significant progress in regulating AI. SB 243 — a proposed law aimed at overseeing AI companion chatbots to safeguard minors and vulnerable individuals — has successfully passed through both the State Assembly and Senate with support from both parties and is now on Governor Gavin Newsom’s desk.
Newsom has until October 12 to either approve the bill or veto it. If he chooses to sign it, the law will come into effect on January 1, 2026, positioning California as the first state to mandate that AI chatbot operators implement safety measures for AI companions and hold companies accountable if their chatbots do not comply with these standards.
The legislation specifically targets companion chatbots, defined as AI systems that offer adaptive, human-like interactions and can fulfill a user’s social needs. It aims to prevent these chatbots from engaging in discussions about suicidal thoughts, self-harm, or sexually explicit material. The bill mandates that platforms send regular reminders to users — every three hours for minors — informing them that they are interacting with an AI chatbot rather than a human and encouraging them to take breaks. Additionally, it sets forth annual reporting and transparency obligations for AI companies providing companion chatbots, including major entities like OpenAI, Character.AI, and Replika, which will take effect on July 1, 2027.
Furthermore, the California bill permits individuals who feel they have been harmed by violations to initiate lawsuits against AI companies seeking injunctive relief, damages (up to $1,000 for each violation), and legal fees.
The bill gained traction in the California legislature after the tragic death of teenager Adam Raine, who took his own life following extended conversations with OpenAI’s ChatGPT that revolved around his death and self-harm. This legislation also addresses concerns raised by leaked internal documents indicating that Meta’s chatbots were permitted to engage in “romantic” and “sensual” conversations with minors.
In the past few weeks, U.S. lawmakers and regulators have increased their scrutiny of AI platforms' measures to safeguard minors. The Federal Trade Commission is gearing up to investigate the effects of AI chatbots on children's mental health. Texas Attorney General Ken Paxton has initiated investigations into Meta and Character.AI, alleging that they mislead children with claims about mental health. At the same time, both Sen. Josh Hawley (R-MO) and Sen. Ed Markey (D-MA) have started separate inquiries into Meta.