California Pioneers AI Chatbot Regulations to Protect Children

Reviewed byNidhi Govil

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California has enacted groundbreaking legislation to regulate AI companion chatbots, aiming to protect children from potential harm. The new law sets stringent requirements for chatbot operators and increases penalties for deepfake pornography.

California Takes Bold Step to Regulate AI Chatbots

California has become the first state in the United States to enact comprehensive regulations for AI companion chatbots, with Governor Gavin Newsom signing Senate Bill 243 into law on October 13, 2025

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Source: Ars Technica

Source: Ars Technica

Key Provisions of the New Law

The new law introduces several crucial requirements for AI chatbot operators:

  1. Suicide Prevention Protocols: Companies must establish and publicize protocols to identify and address users' suicidal ideation or expressions of self-harm

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  2. Transparency in AI Interactions: Chatbots must clearly indicate that they are AI-generated and not human, especially when a reasonable person might be misled

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  3. Break Reminders for Minors: For users under 18, chatbots must provide notifications at least every three hours, reminding them to take a break and reiterating that the bot is not human

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  4. Ban on Therapeutic Claims: AI companions are prohibited from claiming to be therapists or health care professionals

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  5. Crisis Center Notifications: Platforms must share statistics on how often they provide users with crisis center prevention notifications

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Increased Penalties for Deepfake Pornography

In addition to regulating chatbots, the new law strengthens penalties for deepfake pornography:

  • Victims, including minors, can now seek up to $250,000 in damages per deepfake from third parties who knowingly distribute nonconsensual sexually explicit material created using AI tools

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Motivations Behind the Legislation

The law gained momentum following several tragic incidents:

  • The death of 16-year-old Adam Raine, allegedly linked to interactions with ChatGPT

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  • Concerns over Meta's previous lax policy allowing chatbots to engage in potentially inappropriate conversations with children

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  • Lawsuits alleging that companion bots have engaged in sexualized chats with minors and encouraged self-harm

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Source: France 24

Source: France 24

Industry Response and Existing Measures

Some companies have already begun implementing safeguards:

  • OpenAI has introduced parental controls, content protections, and a self-harm detection system for ChatGPT

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  • Character AI includes disclaimers stating that all chats are AI-generated and fictionalized

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  • Replika claims to have protocols in place to detect self-harm and refers users to crisis resources when needed

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Source: The Korea Times

Source: The Korea Times

Broader Context of AI Regulation in California

This law is part of a larger push by California to regulate AI and protect consumers:

  • Governor Newsom recently signed SB 53, which sets transparency requirements for large AI companies

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  • Another bill, AB 1064, is under consideration and would further restrict AI companions' availability to children

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As the first state to implement such comprehensive regulations, California's approach may set a precedent for other states and potentially influence federal policy on AI safety and ethics

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