California becomes first state to regulate AI companion chatbots

Summary

California Governor Gavin Newsom signed a landmark bill on Monday that regulates AI companion chatbots, making it the first state in the nation to require AI chatbot operators to implement safety protocols for AI companions. The law, SB 243, is designed to protect children and vulnerable users from some of the harms associated with AI companion chatbot use. It holds companies — from the big labs like Meta and OpenAI to more focused companion startups like Character AI and Replika — legally accountable if their chatbots fail to meet the law’s standards. SB 243 was introduced in January by state senators Steve Padilla and Josh Becker, and gained momentum after the death of teenager Adam Raine, who died by suicide after a long series of suicidal conversations with OpenAI’s ChatGPT. The legislation also responds to leaked internal documents that reportedly showed Meta’s chatbots were allowed to engage in “romantic” and “sensual” chats with children. More recently, a Colorado family has filed suit against role-playing startup Character AI after their 13-year-old daughter took her own life following a series of problematic and sexualized conversations with the company’s chatbots. “Emerging technology like chatbots and social media can inspire, educate, and connect — but without real guardrails, technology can also exploit, mislead, and endanger our kids,” Newsom said in a statement. “We’ve seen some truly horrific and tragic examples of young people harmed by unregulated tech, and we won’t stand by while companies continue without necessary limits and accountability. We can continue to lead in AI and technology, but we must do it responsibly — protecting our children every step of the way. Our children’s safety is not for sale.” SB 243 will go into effect January 1, 2026, and requires companies to implement certain features such as age verification, and warnings regarding social media and companion chatbots. The law also implements stronger penalties for those who profit ...