California Becomes First State to Regulate AI Companions

California Governor Gavin Newsom has signed SB 243, the nation’s first law regulating AI companion chatbots, setting a new benchmark for AI safety and accountability.

The law is designed to protect children and vulnerable users from emotional and psychological harm, and will take effect on January 1, 2026, requiring chatbot operators to adopt strict safety measures

Under SB 243, companies such as OpenAI, Meta, Character AI, and Replika will be legally accountable if their chatbots fail to meet the state’s safety standards

“Emerging technology like chatbots and social media can inspire, educate, and connect — but without real guardrails, technology can also exploit, mislead, and endanger our kids,” Newsom said in a statement.

The legislation now requires companies to build stronger safety systems including age checks, AI disclaimers, and suicide prevention measures reported to the Department of Public Health.

The law also bans chatbots from pretending to be medical professionals or showing sexual content to minors, while reminding young users to take breaks

Firms that violate the law could face fines up to $250,000 per offense, including for deepfake misuse. Several firms, including OpenAI and Replika, have already strengthened content filters, parental controls, and crisis-response tools ahead of enforcement.