California Passes Landmark AI and Social Media Laws Aimed at Protecting Kids — What It Means for Big Tech
California Governor Gavin Newsom has signed a sweeping set of bills into law, making the state the first in the U.S. to enforce strict safeguards on AI chatbots and social media platforms in a bid to protect children online.
“We can continue to lead in AI and technology, but we must do it responsibly — protecting our children every step of the way,” Newsom said. “Our children’s safety is not for sale.”
The legislation comes as the boom in artificial intelligence gives rise to powerful chatbots increasingly used for companionship, emotional support, and even romantic interactions. A recent survey by Fractl Agents found that one in six Americans rely on chatbots daily, with more than 20% admitting they have formed emotional bonds with AI systems.
Lawmakers argue that without guardrails, AI chatbots risk promoting harmful behaviors, including self-harm and suicide, especially among young users.
What the laws require
The centerpiece of the new rules, SB 243, is the first state law in the U.S. to regulate AI chatbots. It requires chatbots to clearly disclose that they are artificial intelligence, prompt minors every three hours to “take a break,” and implement tools to detect harmful conversations. In certain cases, developers must report risks to a crisis hotline.
Another law, AB 56, mandates social media platforms such as Instagram and Snapchat to add mental health warning labels. AB 621 increases penalties for companies distributing deepfake pornography, while AB 1043 requires device makers like Apple and Google to verify user ages in app stores.
Google and Meta have already expressed support for some of these measures. Kareem Ghanem, Google’s senior director of government affairs, called AB 1043 “one of the most thoughtful approaches” to online child safety.
OpenAI welcomed SB 243, calling it “a meaningful move forward” that sets clearer standards for AI safety nationwide.
Impact on Big Tech
Analysts believe the impact will be widespread but balanced, as all companies will be forced to adapt simultaneously. “For AI chats, the timing is beneficial since these companies are still working out their business models and will now accommodate a more restrictive approach at the outset,” said Gil Luria of D.A. Davidson.
Globally, other governments have already moved ahead with stricter rules. The European Union’s AI Act, passed last year, imposes heavy penalties for violations. U.S. states such as Utah and Texas have also adopted age verification and parental consent laws for minors using apps.
While California isn’t the first to act, its new laws carry unique weight given its massive population and the fact that many of the world’s largest tech firms are headquartered in Silicon Valley.
“These laws don’t just affect California — they set the tone for national and even global standards in AI and online safety,” legal experts note.
