Setting a precedent for the rest of the United States, the state of California enacted new AI related privacy laws to protect consumers from becoming victims to the illegal misuse of their personal data, identities, and how we should expect interaction with AI content and chatbots to work.
While it’s tough to imagine a tech product to be marketed without the term “AI” thrown somewhere into its description as a positive selling point, many consumers are hesitant to go all-in on making use of the technology to its fullest. Others hesitate due to its growing reputation for facilitating stolen artwork in the production of supposedly “original” content. Even more people just don’t trust that they’re receiving unbiased or factual content at all when engaging with AI services or chatbot entities.
California legislators have taken it upon themselves to create laws, signed by Governor Gavin Newsom, that are intended to improve consumer protection through more strict safety and transparency driven policies. While these regulations aren’t expected to be implemented immediately and will likely be rolled out over time through 2026 and 2027, their intent will likely require its proponents to keep a close eye on how AI evolves in the coming years so that compliance keeps up with the technology and consumer needs and expectations.
Signed into law by Governor Gavin Newsom on October 13, 2025, law AB853 updates the California AI Transparency Act, which extends the compliance deadline for the already existing AI Transparency Act, to August 2, 2026. Large online platforms (social media, etc), generative AI system-hosting platforms, and capture device manufacturers creates more stringent requirements to be followed in order to operated within the state when interacting with or serving general consumers. Also signed into law was SB243, which was crafted to protect children from potential harmful effects of AI companion chatbots, appropriately called the Companion Chatbot law.
Here’s a full list of key AI laws included in this effort:
- Transparency in Frontier Artificial Intelligence Act (SB 53): Requires developers of powerful “frontier” AI models to implement safety policies, report risks, and ensure transparency, focusing on large developers.
- AI Transparency Act Updates (AB 853): Extends deadlines and adds obligations for platforms and manufacturers to disclose AI-generated content (like deepfakes).
- Companion Chatbot Law (SB 243): Mandates disclosures for companion chatbots, ensures child safety, and requires crisis support protocols.
- AI in Employment (FIHA Regulations): Rules under the Fair Employment and Housing Act (FIHA) hold employers liable for discrimination from AI tools, effective October 2025.
- AI Defenses Bar (AB 316): Prevents defendants from claiming an AI autonomously caused harm in civil suits.