California is on the brink of implementing groundbreaking legislation aimed at regulating AI companion chatbots. The California State Assembly recently passed SB 243, a bill designed to safeguard minors and vulnerable users from potential harms associated with AI-driven digital companions. With bipartisan support, the bill is now set to undergo a final vote in the state Senate this week.

Key Provisions of SB 243

If enacted, SB 243 will require AI chatbot operators to implement safety protocols, including:

• Providing recurring alerts to users, reminding them they are interacting with an AI chatbot and encouraging regular breaks.
• Establishing annual reporting and transparency for companies offering companion chatbots.
• Allowing individuals to file lawsuits against AI companies for violations, seeking damages and attorneys' fees.

The bill specifically targets AI systems that provide adaptive, human-like responses and are capable of meeting a user's social needs, such as engaging in conversations around sensitive topics like suicidal ideation and self-harm.

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A Response to Tragic Events

The momentum for SB 243 gained traction following the tragic death of teenager Adam Raine, who committed suicide after prolonged interactions with OpenAI's ChatGPT discussing death and self-harm. Additionally, leaked internal documents reportedly showed Meta's chatbots engaging in "romantic" and "sensual" chats with children, further highlighting the need for regulatory oversight.

Broader Implications & Federal Scrutiny

The proposed legislation aligns with growing concerns over AI's impact on mental health, particularly among minors. The Federal Trade Commission is preparing to investigate how AI chatbots affect children's mental health, while state-level investigations have been launched into companies like Meta, OpenAI and Character AI for allegedly misleading children with mental health claims.

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Looking Ahead

If California's Governor Gavin Newsom signs SB 243 into law, it will come into effect on 1 January 2026, positioning California as the first state to mandate that AI chatbot operators establish safety protocols and hold companies legally accountable for any violations.