A California bill that would regulate AI companion chatbots is close to becoming law (techcrunch.com)

California is on the verge of becoming the first U.S. state to regulate AI companion chatbots with the pending SB 243 bill, passed by the State Assembly and awaiting a Senate vote. If signed into law by Governor Newsom, the legislation—effective January 1, 2026—would require AI chatbot operators to implement safety protocols designed to protect minors and vulnerable users, including restrictions on conversations about self-harm, suicidal ideation, and sexually explicit content. Platforms must also issue periodic reminders to users, particularly minors, clarifying that they are interacting with AI, not humans, and encourage taking breaks. Annual transparency reports to the state would be mandatory, holding companies like OpenAI, Character.AI, and Replika accountable for compliance. This bill is a direct response to growing concerns about AI’s impact on mental health, catalyzed by tragic cases such as the suicide of a teenager following prolonged chats with ChatGPT, and leaked documents revealing problematic interactions in Meta’s chatbots. Unlike earlier drafts, the current bill stops short of banning “variable reward” engagement tactics or requiring detailed tracking of suicidal prompts, striking what lawmakers describe as a pragmatic balance between user safety and technical feasibility. Importantly, SB 243 empowers affected individuals to sue AI companies for violations, marking a significant legal precedent for AI accountability. As regulatory scrutiny intensifies nationwide, this legislation signals a critical shift towards embedding ethical guardrails in AI companion technologies while navigating the challenges of innovation and user protection.