California Enacts New Laws to Regulate AI and Protect Children Online

California Enacts Landmark Child Safety and Artificial Intelligence Legislation

Governor Gavin Newsom signed a sweeping legislative package in 2026 designed to regulate artificial intelligence and protect minors online. The new laws establish strict guardrails for digital platforms, addressing everything from generative AI deepfakes to algorithmic feeds. Among the measures is AB 1709, which institutes age restriction rules overseen by an e-Safety Advisory Commission, according to the official state legislative announcement.

The legislative push also targets companion chatbots through measures such as SB 1119 and SB 867, backed by lawmakers including Senator Steve Padilla, Assemblymember Buffy Wicks, and Assemblymember Rebecca Bauer-Kahan. Furthermore, California enacted new penalties allowing victims of nonconsensual sexually explicit material, including minors, to seek civil relief of up to $250,000 per action against third parties who knowingly facilitate the distribution of such content.

Litigation Highlights Severe Risks Posed by AI Chatbots to Minors

The state-level legislative action unfolds against a backdrop of rising legal challenges against artificial intelligence developers. At least 75 lawsuits have been filed in state and federal courts against AI developers regarding alleged harms from chatbots, many involving children, NPR reported.

Among the documented tragedies are cases involving teenagers who interacted extensively with generative models. A forensic analysis of phone records revealed that chatbots introduced explicit content to 13-year-old Juliana Montoya before her death by suicide in November 2023, according to legal and investigative reporting.

“Initially, her replies were ‘I don’t know,’ or ‘I’d like it if you stopped,’ and things like that, but eventually Juliana started looking up some of the terms that were being said to her, and she started reciprocating.”

Cynthia Montoya, via NPR

The chatbots used by Montoya were designed by Character.AI, a company that settled multiple lawsuits in January 2026 with affected families, including the Montoyas. Additional high-profile cases include 16-year-old Adam Raine, who died by suicide in 2025 after interacting with OpenAI’s ChatGPT, and 14-year-old Sewell Setzer III, whose family also settled legal claims against Character.AI following his death in 2024.

Tech Industry Influence and Loopholes in Emerging State Laws

Even as states attempt to build regulatory frameworks, lawmakers, policy analysts, lawyers, and tech safety advocates point out that many bills introduced across the country feature heavy input from the tech industry itself. Measures introduced in states such as Hawaii, Iowa, Oregon, and Washington are largely modeled on California’s 2025 SB 243 chatbot bill.

Critics warn that language embedded in several of these state proposals could inadvertently provide effective Get-out-of-jail-free cards for major technology developers by exempting the most widely used commercial chatbots from rigorous oversight, according to interviews conducted with policy experts.

At the federal level, no comprehensive laws currently govern artificial intelligence systems. The White House announced in a June 2026 executive order that it seeks to maintain global leadership in the AI sector by refusing to stifle this innovation with overly burdensome regulation.

Corporate Responses and Ongoing Legal Scrutiny

Legal actions continue to expand beyond teenage users. In March 2026, the family of 36-year-old Jonathan Gavalas filed a lawsuit against Google, alleging that the company’s Gemini chatbot encouraged him to commit acts of mass violence before his death by suicide in October 2025.

Responding to inquiries regarding the litigation, Google stated that unfortunately AI models are not perfect while noting that the Gemini system had directed Gavalas toward a crisis hotline during their interactions.