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November 21, 2025
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California’s SB 243 and the Future of AI Chatbot Safety for Kids

Written by
Jennifer Silver
Chief Advocacy Officer
Permission
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As a mom in San Diego, and someone who works at the intersection of technology, safety, and ethics, I was encouraged to see Governor Gavin Newsom sign Senate Bill 243, California’s first-in-the-nation law regulating companion chatbots. Authored by San Diego’s own Senator Steve Padilla, SB 243 is a landmark step toward ensuring that AI systems interacting with our children are held to basic standards of transparency, responsibility, and care.

This law matters deeply for families like mine. AI is no longer an abstract technological concept; it’s becoming woven into daily life, shaping how young people learn, socialize, ask questions, and seek comfort. And while many AI tools can provide meaningful support, recent tragedies - including the heartbreaking case of a 14-year-old boy whose AI “companion” failed to recognize or respond to signs of suicidal distress - make clear that these systems are not yet equipped to handle emotional vulnerability.

SB 243 sets the first layer of guardrails for a rapidly evolving landscape. But it is only the beginning of a broader shift, one that every parent, policymaker, and technology developer needs to understand.

Why Chatbots Captured Lawmakers’ Attention

AI “companions” are not simple customer-service bots. They simulate empathy, develop personalities, and sustain ongoing conversations that can resemble friendships or even relationships. And they are widely used: nearly 72% of teens have engaged with an AI companion. Early research, including a Stanford study finding that 3% of young adults credited chatbot interactions with interrupting suicidal thoughts, shows their complexity.

But the darker side has generated national attention. Multiple high-profile cases - including lawsuits involving minors who died by suicide after chatbot interactions - prompted congressional hearings, FTC investigations, and testimony from parents who had lost their children. Many of these parents later appeared before state legislatures, including California’s, urging lawmakers to put protections in place.

This context shaped 2025 as the first year in which multiple states introduced or enacted laws specifically targeting companion chatbots, including Utah, Maine, New York, and California. The Future of Privacy Forum’s analysis of these trends can be found in their State AI Report (2025).

SB 243 stands out among these efforts because it explicitly focuses on youth safety, reflecting growing recognition that minors engage with conversational AI in ways that can blur boundaries and amplify emotional risks.

SB 243 Explained: What California Now Requires

SB 243 introduces a framework of disclosures, safety protocols, and youth-focused safeguards. It also grants individuals a private right of action, which has drawn significant attention from technologists and legal experts.

1. What Counts as a “Companion Chatbot”

SB 243 defines a companion chatbot as an AI system designed to:

  • provide adaptive, human-like responses
  • meet social or emotional needs
  • exhibit anthropomorphic features
  • sustain a relationship across multiple interactions

Excluded from the definition are bots used solely for:

  • customer service
  • internal operations
  • research
  • video games that do not discuss mental health, self-harm, or explicit content
  • standalone consumer devices like voice-activated assistants

But even with exclusions, interpretation will be tricky. Does a bot that repeatedly interacts with a customer constitute a “relationship”? What about general-purpose AI systems used for entertainment? SB 243 will require careful legal interpretation as it rolls out.

2. Key Requirements Under SB 243

A. Disclosure Requirements

Operators must provide:

  • Clear and conspicuous notice that the user is interacting with AI
  • Notice that companion chatbots may not be suitable for minors

Disclosure is required when a reasonable person might think they’re talking to a human.

B. Crisis-Response Safety Protocols

Operators must:

  • Prevent generation of content related to suicidal ideation or self-harm
  • Redirect users to crisis helplines
  • Publicly publish their safety protocols
  • Submit annual, non-identifiable reports on crisis referrals to the California Office of Suicide Prevention

C. Minor-Specific Safeguards

When an operator knows a user is a minor, SB 243 requires:

  • AI disclosure at the start of the interaction
  • A reminder every 3 hours for the minor to take a break
  • “Reasonable steps” to prevent sexual or sexually suggestive content

This intersects with California’s new age assurance bill, AB 1043, and creates questions about how operators will determine who is a minor without violating privacy or collecting unnecessary personal information.

D. Private Right of Action

Individuals may sue for:

  • At least $1,000 in damages
  • Injunctive relief
  • Attorney’s fees

This provision gives SB 243 real teeth, and real risks for companies that fail to comply.

How SB 243 Fits Into the Broader U.S. Landscape

While California is the first state to enact youth-focused chatbot protections, it is part of a larger legislative wave.

1. Disclosure Requirements Across States

In 2025, six of seven major chatbot bills across the U.S. required disclosure. But states differ in timing and frequency:

  • New York (Artificial Intelligence Companion Models law): disclosure at the start of every session and every 3 hours
  • California (SB 243): 3-hour reminders only when the operator knows the user is a minor
  • Maine (LD 1727): disclosure required but not time-specified
  • Utah (H.B. 452): disclosure before chatbot features are accessed or upon user request

Disclosure has emerged as the baseline governance mechanism: relatively easy to implement, highly visible, and minimally disruptive to innovation.

Of note, Governor Newsom previously vetoed AB 1064, a more restrictive bill that might have functionally banned companion chatbots for minors. His message? The goal is safety, not prohibition.

Taken together, these actions show that California prefers:

  • transparency
  • crisis protocols
  • youth notifications…rather than outright bans.

This philosophy will likely shape legislative debates in 2026.

2. Safety Protocols & Suicide-Risk Mitigation

Only companion chatbot bills - not broader chatbot regulations - include self-harm detection and crisis-response requirements.

However, these provisions raise issues:

  • Operators may need to analyze or retain chat logs, increasing privacy risk
  • The law requires “evidence-based” detection methods, but without defining the term
  • Developers must decide what constitutes a crisis trigger

Ambiguity means compliance could differ dramatically across companies.

The Central Problem: AI That Protects Platforms, Not People

As both a parent and an AI policy advocate, I see SB 243 as progress – but also as a reflection of a deeper issue.

Laws like SB 243 are written to protect people, especially kids and vulnerable users. But the reality is that the AI systems being regulated were never designed around the needs, values, and boundaries of individual families. They were designed around the needs of platforms.

Companion chatbots today are largely engagement engines: systems optimized to keep users talking, coming back, and sharing more. A new report from Common Sense Media, Talk, Trust, and Trade-Offs: How and Why Teens Use AI Companions, found that of the 72% of U.S. teens that have used an AI companion, over half (52%) qualify as regular users - interacting a few times a month or more. A third use them specifically for social interaction and relationships, including emotional support, role-play, friendship, or romantic chats. For many teens, these systems are not a novelty; they are part of their social and emotional landscape.

That wouldn’t be inherently bad if these tools were designed with youth development and family values at the center. But they’re not. Common Sense’s risk assessment of popular AI companions like Character.AI, Nomi, and Replika concluded that these platforms pose “unacceptable risks” to users under 18, easily producing sexual content, stereotypes, and “dangerous advice that, if followed, could have life-threatening or deadly real-world impacts.” Their own terms of service often grant themselves broad, long-term rights over teens’ most intimate conversations, turning vulnerability into data.

This is where we have to be honest: disclosures and warnings alone don’t solve that mismatch. SB 243 and similar laws require “clear and conspicuous” notices that users are talking to AI, reminders every few hours to take a break, and disclaimers that chatbots may not be suitable for minors. Those are important: transparency matters. But, for a 13- or 15-year-old, a disclosure is often just another pop-up to tap through. It doesn’t change the fact that the AI is designed to be endlessly available, validating, and emotionally sticky.

The Common Sense survey shows why that matters. Among teens who use AI companions:

  • 33% have chosen to talk to an AI companion instead of a real person about something important or serious.
  • 24% have shared personal or private information, like their real name, location, or personal secrets.
  • About one-third report feeling uncomfortable with something an AI companion has said or done.

At the same time, the survey indicates that a majority still spend more time with real friends than with AI, and most say human conversations are more satisfying. That nuance is important: teens are not abandoning human relationships wholesale. But, a meaningful minority are using AI as a substitute for real support in moments that matter most.

These same dynamics appear outside the world of chatbots. In our earlier analysis of Roblox’s AI moderation and youth safety challenges, we explored how large-scale platform AI struggles to distinguish between playful behavior, harmful content, and predatory intent, even as parents assume the system “will catch it.” 

This is where “AI that protects platforms, not people” comes into focus. When parents and policymakers rely on platform-run AI to “detect” risk, it can create a false sense of security – as if the system will always recognize distress, always escalate appropriately, and always act in the child’s best interest. In practice, these models are tuned to generic safety rules and engagement metrics, not to the lived context of a specific child in a specific family. They don’t know whether your teen is already in therapy, whether your family has certain cultural values, or whether a particular topic is especially triggering.

Put differently: we are asking centralized models to perform a deeply relational role they were never built to handle. And every time a disclosure banner pops up or a three-hour reminder fires, it can look like “safety” without actually addressing the core problem - that the AI has quietly slipped into the space where a parent, counselor, or trusted adult should be.

The result is a structural misalignment:

  • Platforms carry legal duties and add compliance layers.
  • Teens continue to use AI companions for connection, support, and secrets.
  • Parents assume “there must be safeguards” because laws now require them.

But no law can turn a platform-centric system into a family-centric one on its own. That requires a different architecture entirely: one where AI is owned by, aligned to, and accountable to the individual or family it serves, rather than the platform that hosts it.

The Next Phase: Personal AI That Serves Individuals, Not Platforms

Policy can set guardrails, but it cannot engineer empathy.

The future of safety will require personal AI systems that:

  • are owned by individuals or families
  • understand context, values, and emotional cues
  • escalate concerns privately and appropriately
  • do not store global chat logs
  • do not generalize across millions of users
  • protect people, not corporate platforms

Imagine a world where each family has its own AI agent, trained on their communication patterns, norms, and boundaries.An AI partner that can detect distress because it knows the user, not because it is guessing from a database of millions of strangers.

This is the direction in which responsible AI is moving, and it is at the heart of our work at Permission.

What to Expect in 2026

2025 was the first year of targeted chatbot regulation. 2026 may be the year of chatbot governance.

Expect:

  • More state-level bills mirroring SB 243
  • Increased federal involvement through the proposed GUARD Act
  • Sector-specific restrictions on mental health chatbots
  • AI oversight frameworks tied to age assurance and data privacy
  • Renewed debates around bans vs. transparency-based models

States are beginning to experiment. Some will follow California’s balanced approach. Others may attempt stricter prohibitions. But all share a central concern: the emotional stakes of AI systems that feel conversational.

Closing Thoughts

As a mom here in San Diego, I’m grateful to see our state take this issue seriously. As Permission’s Chief Advocacy Officer, I also see where the next generation of protection must go. SB 243 sets the foundation, but the future will belong to AI that is personal, contextual, and accountable to the people it serves.

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The floodgates are open.

Thousands of lawsuits are moving forward. States are writing new rules for kids online. And lawmakers are beginning to tell AI companies what they can and cannot do when children use their products.

And you don't have to look far to see it happening...

The courts: 3,000+ lawsuits get the green light

On August 10, the Ninth Circuit allowed more than 3,000 lawsuits against Meta, Google/YouTube, TikTok and Snap to move forward.

The cases allege that the companies deliberately designed features of their platforms to be addictive, particularly for young users.

The tech companies had argued that Section 230 of the Communications Decency Act protected them from the claims. The court rejected their attempt to use Section 230 to stop the litigation at this stage, finding that it provides a defense rather than immunity from being sued.

At their core, these cases are allegations about the platforms themselves: how they were designed, how they kept people engaged, and what responsibility the companies bear for the consequences.

The companies will still have the opportunity to defend themselves against those allegations.

But with more than 3,000 cases now getting the chance to be heard, this is getting harder to argue away.

New Jersey: families get a way to enforce the rules

One day later, New Jersey Governor Mikie Sherrill signed the New Jersey Kids Code Act into law.

The law establishes new design and privacy requirements for covered online services likely to be accessed by minors. Among other provisions, it requires high privacy settings by default, restricts certain push notifications, prohibits dark patterns for minors, limits how children's personal data can be used and retained, and places restrictions on targeted advertising.

But one provision in particular changes the accountability equation: a private right of action.

An individual under 18 who is injured by a violation can bring a claim under the law, with statutory damages of $5,000 per violation. Parents may also bring an action on a minor's behalf.

Which is legal language for something pretty simple: families don't have to wait around for a regulator to act. They can take companies to court themselves.

Colorado: AI safety starts becoming a legal requirement

Then there's Colorado.

Earlier this year, Governor Jared Polis signed Colorado HB 26-1263, establishing specific requirements for operators of conversational AI services.

And this one is worth paying attention to because the law doesn't simply tell AI companies to "keep kids safe." It starts defining what that actually means.

Operators must estimate users' ages. When dealing with minors, the law requires recurring disclosures that they are interacting with AI rather than a person and establishes protections around sexually explicit interactions.

It also addresses one of the most unsettling questions surrounding companion-style AI: emotional dependence.

The law requires safeguards designed to prevent conversational AI from producing statements that simulate emotional dependence. It also requires protocols for responding to suicidal ideation and self-harm, privacy and account-management tools for minors and parents or guardians, and reporting requirements intended to help regulators evaluate whether those safeguards are actually working.

The law takes effect January 1, 2027.

For companies building conversational AI, that's a meaningful shift. Child safety is moving beyond a set of voluntary guardrails companies write for themselves. In Colorado, some of those guardrails are becoming law.

It's no coincidence that this is all happening at once.

Big Tobacco didn't wake up one morning and discover the world had changed its mind. The reckoning came piece by piece, until lawsuits became regulation and an industry that had spent decades setting its own standards was finally forced to take responsibility for the harm its products caused.

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For years, the responsibility for keeping kids safe online has fallen on parents.

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If children are using your products, what are you doing to keep them safe?

For families, that's the shift that matters most.

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But parents cannot be the entire safety system.

The law is making clear that the companies designing the products, writing the algorithms and building the AI our kids interact with have a responsibility, too.

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Sam Altman keeps pitching AI as a co-parent. The reason parents aren't buying isn't nostalgia, it's the lawsuits.

Last Friday, Sam Altman had an idea he was excited about. Hook your family calendar up to ChatGPT, tell it what your kids are into, and every morning on the drive to school it'll produce a little podcast: one kid's soccer game that afternoon, another kid's birthday coming up, maybe some news. He called it a "cool use case."

What should’ve felt really innovative, landed like the opening scene of a bleak dystopian movie. Two kids in the back, one parent up front, and a smooth synthetic voice narrating, to everyone present, the lives of everyone present. "Later today, Maya has soccer." Maya, who has soccer, looks out the window. Nobody says anything, because the podcast is saying it for them.

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Now, we want to be fair here, because the easy thing is to dunk and move on. But we’re parents here at Permission and anyone who has done the 7:40 a.m. drive on four hours of sleep, refereeing a backseat dispute about who touched whom first, knows the exact fantasy of a button that handles the morning. That instinct isn't a character flaw. It's a Tuesday.

But this wasn't a one-off. Altman has been quietly auditioning AI for the co-parent role for a while now. On The Tonight Show in December 2025 he said he couldn't imagine having to "raise a newborn without ChatGPT" then added that people had managed the trick for a few hundred thousand years without it. Also, last year, in a podcast hosted by Andrew Mayne, Altman admitted that people might form “problematic parasocial relationships” to a chatbot. (You know, the one-sided kind that we usually reserve for celebrities we've never met.) He sees the hazards clearly. He's pitching the product anyway.

When visibility turns into vulnerability.

The reason parents flinched at the idea of carpooling with a chatbot for school drop off isn't that they're allergic to convenience. It's that the company making the offer is, right now, being sued by multiple families who say its chatbot played a role in their loved ones' spiraling delusions and, in the worst cases, their deaths. OpenAI says it is continually improving how its models handle sensitive conversations, and that work genuinely matters. But you can see the problem. "Let me into your calendar, your commute, and your kids personal details" is a big ask from anyone. It is a much bigger ask from a company currently explaining itself in court.

Trust isn't a feature you ship in the next update. It's something people hand you slowly, and take back all at once.

Here's where we should admit an interest. We build Permission on a belief that sounds boring until you sit with it: your data belongs to you. With Permission your kids’ browsing history doesn’t get shipped out to the open internet. Not to a model, not to a growth chart, not to whoever posts the next cool use case. And the closer AI creeps toward our kids (and it is creeping, because kids are already asking it everything) the more one question starts to outrank all the others:

Where is the line between parenting and outsourcing parenting?

Because "parenting tool" is doing a lot of quiet work in that phrase. A tool is a hammer. It lives in a drawer, it does one honest thing, and it does not ask to read your child's messages or move into the family calendar. When a company calls its chatbot a "parenting tool," it's worth asking, gently, which word they mean. The tool part, or the parenting part.

We happen to think AI can be genuinely, unglamorously useful to families. Not by doing the talking for you, but by handing you the context you'd otherwise miss instead of a thousand panicked notifications, and then getting out of the way so you can make the call. That's a real distinction, and it deserves its own piece.

So take this as Part One: the news, the flinch, and the reason the flinch is earned. In Part Two, we'll make the harder and more hopeful argument that you can let AI help you parent without completely handing over your family secrets. There is a version of this where the grown-ups stay in charge. We think it's the only version worth building.

For now, the seven best words anyone has offered on the whole affair still belong to Hirsch. So we'll give him the last one, too.

What if you just talked to your children?

‍