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California Enacts First State Law Regulating AI Companion Chatbots

Newsom also vetoed a stricter bill that advocates favored.

Overview

  • Gov. Gavin Newsom signed SB 243, making California the first state to set rules for AI companions, with the law taking effect on January 1, 2026.
  • Operators must disclose that chats are AI, issue break and identity reminders to minors at least every three hours, block sexually explicit content for under-18s, and maintain suicide and self-harm detection with referrals to crisis services.
  • Chatbots are barred from representing themselves as healthcare professionals, and companies must submit data on detected suicidal ideation and crisis notifications to state health authorities.
  • The law provides avenues for accountability, including a private right of action for families when developers violate the requirements.
  • Some child-safety groups withdrew support, calling the bill diluted after industry lobbying, as Newsom vetoed AB 1064, a tougher measure that he warned could effectively block minors’ access to chatbots.