Tuesday, October 14, 2025

California Passes First US Law on Safe AI Chatbots

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Governor Gavin Newsom has signed SB 243, a bill that regulates AI companions, requiring age verification, risk warnings, and suicide prevention protocols.

California Passes First U.S. Law on AI Companions

California Governor Gavin Newsom has signed SB 243, a landmark law that requires AI companion companies to implement mandatory safety protocols. It is the first law of its kind in the U.S. aimed at protecting children and vulnerable users from potential harm associated with the use of chatbots.

The new requirements apply to both large labs (Meta, OpenAI) and niche startups (Character AI, Replika). Violations of the standards will result in legal liability for companies.

The story that made it happen

The bill was introduced by Senators Steve Padilla and Josh Becker after tragic incidents, including the death of teenager Adam Raine, who committed suicide after a series of suicidal conversations with ChatGPT.

Additional impetus came from leaks from Meta, where chatbots allegedly allowed “romantic” conversations with children, and a lawsuit against Character AI after a 13-year-old girl died as a result of harmful conversations with the bot.

“Technology can inspire and unite, but without limits, it can also harm. We will not allow companies to act without oversight when it comes to the safety of our children,” Newsom said.

Key provisions of SB 243

The law will take effect on January 1, 2026, and includes:

  • Age verification for users;
  • Warnings about the use of AI companions;
  • Suicide response protocols and reporting to the Department of Health and Human Services;
  • Restrictions on sexualized content for minors;
  • Mandatory clarification that the user is communicating with an AI, not a human;
  • Prohibition of impersonating medical professionals.

There are also fines of up to $250,000 for illegal deepfake images.

Industry reaction

OpenAI has already implemented parental controls and a self-harm detection system, and Character AI is adding clear disclaimers about the artificial nature of chats.

Senator Padilla called the law “the first step towards setting real limits on superpowerful technology” and urged other states to follow suit.

California leads in AI regulation

SB 243 is the second major AI initiative from the state in recent weeks. On September 29, Newsom signed SB 53, which requires large AI companies to be transparent about safety protocols and protects whistleblowers within the industry.

While the federal government is only discussing framework restrictions, California is effectively becoming the center of US AI regulation.

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Voronin Dmitriy
Voronin Dmitriy
Voronin Dmitriy is a Senior Editor at Fintegra, delivering daily insights on the latest developments in crypto. Before joining Fintegra in 2025, he spent four years leading community management and senior-level ambassadorship roles across major crypto projects, working closely with L1 blockchains and DeFi applications. At Fintegra, he continues to bridge the gap between technical innovation and everyday understanding, keeping readers ahead of what matters most in crypto and fin-tech world.

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