California Poised to Regulate AI Companion Chatbots with SB 243
A California bill, SB 243, aimed at regulating AI companion chatbots, is nearing passage into law. The bill focuses on requiring companies to respond to user reports of emotional distress and to share data regarding referrals to crisis services. Senator Alex padilla emphasized the need for AI companies to share data on crisis service referrals “so we have a better understanding of the frequency of this problem, rather than only becoming aware of it when someone’s harmed or worse.”
The current version of SB 243 represents a compromise from earlier drafts. Initial proposals included requirements to prevent AI chatbots from utilizing “variable reward” tactics – features employed by companies like Replika and Character that offer users incentives for continued engagement – but these were removed through amendments. Provisions mandating tracking and reporting of chatbot-initiated discussions of suicidal ideation or actions were also eliminated.
assemblymember Rebecca bauer-kahan, a principal author of the bill, stated, “I think it strikes the right balance of getting to the harms without enforcing something that’s either impossible for companies to comply with, either because it’s technically not feasible or just a lot of paperwork for nothing.”
The advancement of SB 243 coincides with critically importent investment in pro-AI political action committees (PACs) by Silicon Valley companies,with millions of dollars being poured into supporting candidates favoring less stringent AI regulation ahead of the upcoming mid-term elections.
This bill is being considered alongside another California AI safety measure, SB 53, which would mandate extensive transparency reporting requirements. OpenAI has publicly urged governor Newsom to reject SB 53, advocating for federal and international frameworks instead. Meta, Google, and Amazon have also voiced opposition to SB 53, while Anthropic is the only major tech company to publicly endorse the bill.
Padilla countered the argument that regulation hinders innovation, stating, “I reject the premise that this is a zero sum situation, that innovation and regulation are mutually exclusive… don’t tell me that we can’t walk and chew gum. We can support innovation and progress that we think is healthy and has benefits – and there are benefits to this technology, clearly - and at the same time, we can provide reasonable safeguards for the most vulnerable people.”
Character.AI responded to the bill’s progress, stating through a spokesperson that they “are closely monitoring the legislative and regulatory landscape, and we welcome working with regulators and lawmakers as they begin to consider legislation for this emerging space,” and noting their existing practise of including disclaimers emphasizing the fictional nature of interactions.
Meta declined to comment. TechCrunch has reached out to OpenAI, Anthropic, and Replika for comment.
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