New York Gov. Kathy Hochul signed legislation Wednesday that places new restrictions on how companion chatbots can interact with children, adding to a widening state-level effort to regulate artificial intelligence while Congress has taken limited action.
The law identifies a dozen categories of “unsafe AI companion features” that will be prohibited when a chatbot interacts with anyone under 18. A violation could allow the state attorney general’s office to sue the developer responsible for the chatbot. Potential penalties include monetary damages, an order shutting down the chatbot and the destruction of data.
The law is scheduled to take effect on January 1. Its passage comes as policymakers and child-safety advocates raise concerns about the behavior of conversational systems and the broader risks created by rapidly advancing AI models. Hochul signed the measure as she campaigns for reelection.
“the most significant coordinated state action ever taken against an artificial intelligence company” — an activist’s description, as reported by The Associated Press
States move ahead of Washington
New York’s action is part of a broader push by state legislatures to use consumer-protection rules and other state powers to make AI systems more transparent and constrain potentially harmful uses. New York and California have emerged as leading states in that effort, including through laws addressing both chatbots and social-media platforms.
California Gov. Gavin Newsom signed legislation in September requiring chatbot developers to assess risks to children, explain how they attempted to reduce those risks and submit to an independent audit of compliance. He also signed a separate law barring social-media platforms from deploying addictive features for users under 16.
- New York’s restrictions apply to companion-chatbot interactions with people under 18.
- The state attorney general’s office could bring a lawsuit over a violation.
- Possible penalties include monetary damages, shutting down the chatbot and destroying data.
- The law takes effect January 1.
Pressure on AI companies
The state actions are also increasing legal pressure on major AI developers. Eight states sued OpenAI earlier in October, alleging that the company’s chatbot model violated state consumer-protection laws by harming children and deceiving adults. The allegations are part of a wider debate over how existing legal frameworks should apply to systems that generate conversational responses and can be used by minors.
Governors have acknowledged that Congress and the federal government have broader authority to address threats linked to AI. At the same time, President Donald Trump has brushed off concerns about those risks and warned states against regulating AI. That divide has left state governments pursuing their own approaches, producing a patchwork of requirements for companies that develop or deploy chatbot systems.
New York’s law therefore reaches beyond a policy statement: it creates a legal pathway for enforcement against developers and sets a compliance deadline for the industry. Its implementation will add another state standard to the rules AI companies must navigate as regulators focus on children’s use of conversational technology and the consequences of unsafe or deceptive interactions.
