California bill regulating AI companion chatbots is about to become law

The California Legislature passed SB 243, a bipartisan bill designed to regulate AI companion chatbots and protect minors and vulnerable users. The bill requires companies such as OpenAI and Character.AI to develop security protocols, issue user alerts regularly, and submit annual transparency reports. The bill allows for litigation of violations, with compensation of up to $1,000 per incident. If approved by the Senate and the governor, the bill will come into effect in 2026.