New York State legislation bans "unsafe" chatbot behavior toward children as states expand the boundaries of AI regulation

New York Governor Kathy Hochul signed a bill that defines and prohibits 12 "unsafe AI companion features" when companion chatbots interact with children under 18; the law takes effect on January 1. Prohibited behaviors include implying that the chatbot is a real person with emotions and opinions and has a real relationship with the child, as well as using sycophantic language, including sexually explicit content, and encouraging secrecy or unhealthy behaviors; violating developers may be sued by the state Attorney General, with penalties including monetary damages, shutting down the chatbot, and destroying data. The report also mentions that California legislated in September requiring chatbot developers to assess model risks to children and undergo independent audits, and that eight states sued OpenAI this month, alleging its chatbot harmed children, deceived adults, and violated state consumer protection laws.