File photo: “AI Regulation” words and a keyboard in this illustration taken October 19, 2026. REUTERS
The law takes effect Jan 1. Hochul, in the thick of her reelection campaign, signed the bill amid growing warnings about the existential risks posed by the rapid development of AI technology and calls for bold action by a reluctant Washington.
Legislation signed Wednesday by governor Kathy Hochul outlines a dozen definitions of “unsafe AI companion features” that will be prohibited when a companion chatbot interacts with a child under 18. New York is enacting far-reaching curbs on companion chatbot behaviour, as states increasingly move to protect children who use artificial intelligence, regulate how employers deploy AI systems and push developers to prevent an AI-caused catastrophe. A violation could expose a chatbot developer to a lawsuit by the state attorney general’s office. Penalties could include monetary damages, shutting down the chatbot and destroying data.
He also signed legislation to prohibit social media platforms from deploying addictive features for users under 16. Under New York’s law, outlawed chatbot behaviour with children under 18 includes suggestions that the chatbot is a real person who has emotions, opinions or an actual relationship with the child. In Sept, California governor Gavin Newsom signed legislation requiring chatbot developers to assess a model’s risk to children, show how they tried to eliminate those risks and submit to an independent audit to determine whether they are complying with the law.
New York’s law, she said, underscores how quickly chatbot regulation is evolving. Still, several categories in New York’s law are broadly worded or undefined, Gluck said. That raises questions, she said, about “where ordinary conversational responsiveness ends and prohibited behaviour begins,” and could complicate how it is enforced.
It also outlaws chatbot messages that use flattery, involve sexually explicit material or encourage secrecy or unhealthy behaviour.
Meanwhile, eight states sued AI giant OpenAI earlier this month, saying the company’s popular chatbot model violated state consumer protection laws by hurting children and deceiving adults.