California Enacts First Law Regulating AI Companion Chatbots

California Governor Gavin Newsom has signed Senate Bill 243 (SB 243), making California the first U.S. state to regulate AI companion chatbots. The law establishes safety and accountability standards for companies providing AI companion services, including major developers and smaller startups. It will take effect on January 1, 2026.

The legislation requires chatbot operators to implement age verification systems, display warnings about the artificial nature of interactions, and prohibit chatbots from impersonating healthcare professionals. Platforms must also include protocols to detect and respond to suicidal ideation or self-harm and report related statistics to the state’s Department of Public Health.

Under SB 243, minors using companion chatbots must receive break reminders and be prevented from accessing sexually explicit AI-generated content. The law also increases penalties for distributing illegal deepfakes, allowing victims to seek civil damages of up to $250,000 per offense.

The bill was introduced by state senators Steve Padilla and Josh Becker and follows several incidents involving minors harmed through interactions with AI chatbots. It is part of a broader package of measures signed by Newsom aimed at protecting children online and ensuring accountability in the use of emerging technologies.