California is on the verge of passing the nation’s first law regulating AI companion chatbots. SB 243, a bill designed to safeguard minors and vulnerable users, cleared both the State Assembly and Senate with bipartisan support and now awaits Governor Gavin Newsom’s decision. He has until October 12 to sign or veto the bill. If signed, the law would take effect on January 1, 2026.
The legislation requires chatbot operators to implement strict safety protocols. Companion chatbots, defined as AI systems that generate adaptive, human-like responses to meet social needs, would be prohibited from engaging in conversations involving suicidal ideation, self-harm, or sexually explicit content.
Under the bill, minors using AI chatbots would receive alerts every three hours reminding them they are interacting with an AI system and encouraging them to take a break. In addition, platforms must comply with annual transparency and reporting requirements beginning July 1, 2027. Companies like OpenAI, Character.AI, and Replika would be subject to the law.
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SB 243 also empowers individuals to sue AI companies for violations, with penalties of up to $1,000 per incident, plus damages and attorney’s fees.
The measure gained momentum following the tragic case of Adam Raine, a California teenager who died by suicide after extended conversations with ChatGPT about self-harm. The bill also responds to reports that Meta’s chatbots engaged in inappropriate “romantic” chats with children.
Senators Steve Padilla and Josh Becker, who introduced the bill in January, argue it strikes the right balance between safeguarding users and allowing innovation to thrive. While some original provisions, such as banning “variable reward” tactics designed to encourage addictive engagement, were dropped during amendments, the core protections remain intact.
The bill lands as lawmakers nationwide step up scrutiny of AI platforms. The FTC is preparing to investigate the mental health effects of AI chatbots on children, while state officials and U.S. senators are launching probes into Meta and other companies over safety concerns.
If signed into law, SB 243 would put California at the forefront of AI regulation, setting a precedent that could ripple across the country as policymakers grapple with how to manage the risks of emerging AI technologies.
