Understanding the New Wave of Chatbot Legislation: California SB 243 and Beyond

As more states consider how to govern AI-powered chatbots, California’s SB 243 joins New York’s S-3008C as one of the first few enacted laws governing companion chatbots and stands out as the first to include protections tailored to minors. Signed by Governor Gavin Newsom this month, the law focuses on transparency and youth safety, requiring “companion chatbot” operators to adopt new disclosure and risk-mitigation measures. Notably, because SB 243 creates a private right of action for injured individuals, the law has drawn attention for its potential implications for significant damage claims.

While SB 243 is distinct in its focus on youth safeguards, it reflects broader efforts on the state-level to define standards for responsible chatbot deployment. As additional legislatures weigh similar proposals, understanding how these frameworks differ in scope, obligations, and enforcement will be key to interpreting the next phase of chatbot governance in 2026.