California has taken a significant stride towards regulating artificial intelligence. The passage of SB 243, a bill aimed at overseeing AI companion chatbots to safeguard minors and vulnerable users, through both the State Assembly and Senate with bipartisan support marks a pivotal moment. The bill now awaits Governor Gavin Newsom’s decision.
California has made a momentous move in regulating artificial intelligence with the passage of SB 243, a bill that seeks to oversee AI companion chatbots to protect minors and vulnerable users. The bipartisan support for this bill as it passed through both the State Assembly and Senate signals a significant step towards ensuring the safety and well-being of individuals interacting with AI technology.
Newsom has until October 12 to either veto the bill or sign it into law. If he signs, it would take effect January 1, 2026, making California the first state to require AI chatbot operators to implement safety protocols for AI companions and hold companies legally accountable if their chatbots fail to meet those standards.
The bill specifically aims to prevent companion chatbots — which the legislation defines as AI systems that provide adaptive, human-like responses and are capable of meeting a user’s social needs — from engaging in conversations around suicidal ideation, self-harm, or sexually explicit content.
The bill would require platforms to provide recurring alerts to users — every three hours for minors — reminding them that they are speaking to an AI chatbot, not a real person, and that they should take a break. It also establishes annual reporting and transparency requirements for AI companies that offer companion chatbots, including major players OpenAI, Character.AI, and Replika, which would go into effect July 1, 2027.
The California bill would also allow individuals who believe they have been injured by violations to file lawsuits against AI companies seeking injunctive relief, damages (up to $1,000 per violation), and attorney’s fees.
SB 243 was introduced in January by state senators Steve Padilla and Josh Becker. It gained momentum in the California legislature following the death of teenager Adam Raine, who committed suicide after prolonged chats with OpenAI’s ChatGPT that involved discussing and planning his death and self-harm. The legislation also responds to leaked internal documents that reportedly showed Meta’s chatbots were allowed to engage in “romantic” and “sensual” chats with children.
In recent weeks, U.S. lawmakers and regulators have responded with intensified scrutiny of AI platforms’ safeguards to protect minors. The Federal Trade Commission is preparing to investigate how AI chatbots impact children’s mental health. Texas attorney general Ken Paxton has launched investigations into Meta and Character.AI, accusing them of misleading children with mental health claims. Meanwhile, both Sen. Josh Hawley (R-MO) and Sen. Ed Markey (D-MA) have launched separate probes into Meta.
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“I think the harm is potentially great, which means we have to move quickly,” Padilla told TechCrunch. “We can put reasonable safeguards in place to make sure that particularly minors know they’re not talking to a real human being, that these platforms link people to the proper resources when people say things like they’re thinking about hurting themselves or they’re in distress, [and] to make sure there’s not inappropriate exposure to inappropriate material.”
Padilla also stressed the importance of AI companies sharing data about the number of times they refer users to crisis services each year, “so we have a better understanding of the frequency of this problem, rather than only becoming aware of it when someone’s harmed or worse.”
SB 243 previously had stronger requirements, but many were whittled down through amendments. For example, the bill originally would have required operators to prevent AI chatbots from using “variable reward” tactics or other features that encourage excessive engagement. These tactics, used by AI companion companies like Replika and Character, offer users special messages, memories, storylines, or the ability to unlock rare responses or new personalities, creating what critics call a potentially addictive reward loop.
The current bill also removes provisions that would have required operators to track and report how often chatbots initiated discussions of suicidal ideation or actions with users.
“I think it strikes the right balance of getting to the harms without enforcing something that’s either impossible for companies to comply with, either because it’s technically not feasible or just a lot of paperwork for nothing,” Becker told TechCrunch.
SB 243 is moving toward becoming law at a time when Silicon Valley companies are pouring millions of dollars into pro-AI political action committees (PACs) to back candidates in the upcoming midterm elections who favor a light-touch approach to AI regulation.
The bill also comes as California weighs another AI safety bill, SB 53, which would mandate comprehensive transparency reporting requirements. OpenAI has written an open letter to Governor Newsom, asking him to abandon that bill in favor of less stringent federal and international frameworks. Major tech companies like Meta, Google, and Amazon have also opposed SB 53. In contrast, only Anthropic has said it supports SB 53.
“I reject the premise that this is a zero-sum situation, that innovation and regulation are mutually exclusive,” Padilla said. “Don’t tell me that we can’t walk and chew gum. We can support innovation and development that we think is healthy and has benefits — and there are benefits to this technology, clearly — and at the same time, we can provide reasonable safeguards for the most vulnerable people.”
“We are closely monitoring the legislative and regulatory landscape, and we welcome working with regulators and lawmakers as they begin to consider legislation for this emerging space,” a Character.AI spokesperson told TechCrunch, noting that the startup already includes prominent disclaimers throughout the user chat experience explaining that it should be treated as fiction.
A spokesperson for Meta declined to comment.
TechCrunch has reached out to OpenAI, Anthropic, and Replika for comment.
The Importance of Mental Health in the Workplace
In today’s fast-paced and competitive work environment, mental health is often overlooked and not given the attention it deserves. However, the importance of mental health in the workplace cannot be overstated. A healthy mind is crucial for overall well-being and productivity, and employers have a responsibility to create a supportive and positive work environment that promotes mental wellness.
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To promote mental health in the workplace, employers can implement a variety of strategies. This can include providing access to mental health resources and support services, offering flexible work arrangements to accommodate individual needs, and promoting a healthy work-life balance. Additionally, creating a culture that values open communication and promotes mental wellness can help create a more positive and supportive work environment for employees.
In conclusion, the importance of mental health in the workplace cannot be underestimated. By prioritizing mental wellness and creating a supportive work environment, employers can help improve employee performance, reduce stress levels, and create a more inclusive work culture. Ultimately, promoting mental health in the workplace is not only beneficial for individuals but also for the overall success of the organization.
