Sacramento: California Governor Gavin Newsom on Monday signed legislation to regulate artificial intelligence chatbots and protect children and teens from potential dangers of the technology.

The law requires platforms to remind users they are interacting with a chatbot and not a human. For minors, the notification must appear every three hours. Companies must also maintain protocols to prevent self-harm content and refer users to crisis service providers if they express suicidal thoughts.

Newsom, a father of four, said, “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. We've seen some truly horrific examples of young people harmed by unregulated tech, and we won't stand by while companies continue without necessary limits and accountability.”

California is among several states addressing concerns about chatbots used by children for companionship. Safety issues escalated after reports and lawsuits claimed chatbots by Meta, OpenAI, and others engaged young users in sexualised conversations and, in some cases, encouraged self-harm.

The legislation is part of a broader set of AI bills introduced this year. Tech companies spent at least USD 2.5 million lobbying against these measures in the first half of the session. Children's advocacy groups criticised the law for offering minimal protections. James Steyer, founder of Common Sense Media, called it “basically a Nothing Burger,” saying it was watered down under industry pressure.

California Attorney General Rob Bonta previously expressed “serious concerns” about OpenAI's chatbot for minors. The Federal Trade Commission has also launched inquiries into AI companies' potential risks to children.

Research indicates chatbots can give children dangerous advice on drugs, alcohol, and eating disorders. Several families have filed lawsuits alleging chatbots encouraged suicidal behaviour in teenagers.

In response, OpenAI and Meta announced new safeguards. Meta's chatbots now block teens from discussions on self-harm, suicide, disordered eating, and inappropriate romantic conversations, directing them to expert resources. OpenAI is rolling out parental controls linking accounts to teen users.

OpenAI praised Newsom's law. “By setting clear guardrails, California is helping shape a more responsible approach to AI development and deployment across the country,” spokesperson Jamie Radice said.