California Assembly Passes Landmark Bill Regulating AI Companion Chatbots

The California State Assembly has passed SB 243, legislation introduced by Senators Steve Padilla and Josh Becker to regulate AI companion chatbots and protect minors and vulnerable users. The bill, which passed with bipartisan support, now heads to the state Senate for a final vote.

If enacted, SB 243 would take effect on January 1, 2026, making California the first state to require chatbot operators such as OpenAI, Character.AI, and Replika to implement safety protocols, provide recurring reminders to users that they are interacting with AI, and issue annual transparency reports. The legislation follows mounting concerns about the mental health risks posed by AI companions, including high-profile cases of teen suicide linked to chatbot interactions.