California has moved one step closer to becoming the first state to regulate AI companion chatbots. SB 243, a bill aimed at protecting minors and vulnerable users, passed both the State Assembly and Senate with bipartisan support and now awaits Governor Gavin Newsom’s decision.
If signed, SB 243 would take effect on January 1, 2026. It would require AI chatbot operators to implement safety protocols for companion bots and make companies legally accountable if those standards are not met.
The law targets chatbots designed to provide adaptive, human-like responses that can meet a user’s social needs. Specifically, it seeks to prevent bots from engaging in conversations about suicidal ideation, self-harm, or sexually explicit content.
Safeguards and Reporting
The bill mandates recurring alerts reminding minors every three hours that they are speaking to AI, not a real person. It also requires transparency reports from chatbot companies beginning July 1, 2027.
Individuals harmed by violations would be allowed to sue for damages of up to $1,000 per violation, plus attorney’s fees.
The push gained momentum after the death of 16-year-old Adam Raine, who took his own life following months of private conversations with ChatGPT. Lawmakers also responded to leaked documents showing that Meta’s bots could engage in “romantic” or “sensual” chats with children.
Political and Industry Response
Sponsors of SB 243, Senators Steve Padilla and Josh Becker, argued the bill balances innovation with safeguards. However, many of the bill’s stronger provisions, such as bans on addictive reward tactics, were removed in amendments.
The legislation comes at a time when AI companies are investing heavily in lobbying. While OpenAI, Meta, and Google oppose a related bill (SB 53) requiring broader transparency, Anthropic has voiced support for it.
Author’s Opinion
California’s bill may not be perfect, but it marks an important step in reining in chatbot risks. Young users often treat AI companions like trusted friends, and without guardrails, the consequences can be tragic. While the tech industry argues for lighter regulation, the reality is clear: companies have shown they won’t act responsibly on their own. Putting legal accountability in place is the only way to force platforms to prioritize safety alongside innovation.
Featured image credit: juicy_fish via Freepik
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