AI Chatbot Legislation Across the States

Over 35 states and Puerto Rico have introduced AI chatbot legislation in 2025 and 2026.

New York has taken the lead in this effort with the introduction of 19 measures. It is followed closely by Illinois and Pennsylvania which each have at least 10 measures pending, and California which currently has 9 measures pending. Overwhelmingly, these measures are aimed at providing protections for children and protecting the privacy of the individual, as well as preventing discrimination or harm caused by AI systems.  There is a call for transparency with mandates for disclosures that the system user is interacting with a chatbot and not a human being.

When it comes to the protections for children, over 25 states have introduced legislation calling for significant protections including age verifications and restrictions, data protection, parental notification, prevention of harmful content and/or simulation of human-like relationships, and prohibitions on chatbots encouraging harmful behavior or suicide.In California, introduced in 2025, aimed to prohibit companion chatbots from being made available to children unless they were not foreseeably capable of causing harm. This bill was vetoed by Governor Gavin Newsom (D), who expressed concerns about its broad restrictions and its potential to unintentionally ban chatbot use by minors. However, there are other measures still being considered such as SB 300, which regulates what a chatbot operator must do when it has actual knowledge that a user is a minor.In March 2026, Oregon (SB 1546) and Washington (HB 2225) moved to regulate AI companion chatbots, focusing on safety for minors. The legislation requires clear disclosures that the user is interacting with AI, prohibits encouraging self-harm, and restricts simulating romantic relationships or fostering emotional dependency with minors. Oregon’s measure passed both the House and the Senate and now awaits executive approval. Washington’s measure has passed the Senate.

Other measures have been introduced in New York, Pennsylvania, Louisiana, Vermont, and California to regulate the use of artificial intelligence, particularly chatbots, in mental health services. These bills propose various regulations, including consumer data protection, disclosure requirements, and restrictions on advertising and targeting. In New York, SB 7263, which imposes liability for damages caused by a chatbot impersonating certain licensed professionals has passed the Senate Internet and Technology Committee by an undisclosed vote. In Virginia, HB 635, which establishes safety, disclosure, and data-privacy rules for companion chatbots, was introduced in January 2026, heard in subcommittee, and carried over to the 2027 Legislative session. Additionally, several states are considering legislation to protect consumers, including a measure in Hawaii that would require disclosure of AI chatbots in commercial transactions, and a measure in Massachusetts which prohibits misleading bots.

While initially the effort was to enact comprehensive AI regulations, this session this has given way to a sector-by-sector approach. It is clear that the protection of their citizens is at the forefront of the measures being introduced. The consensus, it seems, is that more needs to be done to protect children, so the states are finding that policies that focus on this are easier to move forward. However, even with the popularity of chatbot regulation and the unified desire to protect children, it is still challenging to pass policies to appropriately regulate such fast-moving technology. The states want to balance protections with the reality that these chatbots are a necessary tool for businesses and that this technology can bring opportunities to their economies. The trend with these regulations confirms a desire to help businesses utilize this technology appropriately as they engage with citizens, while minimizing measures that would inhibit their usage.


Legislation like this can influence your business strategies and objectives if you’re not prepared for the changes. Reach out with your questions to understand how these developments might affect your business and whether you could be in a vulnerable position.

 

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