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Here’s what California’s new AI, social media laws mean for Big Tech
Governor Gavin Newsom speaks at Google San Francisco office about ‘Creating an AI-Ready Workforce’ that new joint effort with some of the world’s leading tech companies to help better prepare California’s students and workers for the next generation of technology, in San Francisco, California, United States on August 7, 2025.
Tayfun Coskun | Anadolu | Getty Images
California Gov. Gavin Newsom signed a series of bills Monday targeting child online safety as concerns over the risks associated with artificial intelligence and social media use keep mounting.
“We can continue to lead in AI and technology, but we must do it responsibly — protecting our children every step of the way,” he said in a release. “Our children’s safety is not for sale.”
The latest legislation comes as the AI craze ushers in a wave of more complex chatbots capable of deep, intellectual conversation and encouraging behaviors. Across age groups, people are leaning on AI for emotional support, companionship and in some cases, romantic connections.
A recent survey from Fractl Agents found that one in six Americans rely on chatbots and worry that losing access would stunt them emotionally and professionally. More than a fifth of respondents reported having an emotional connection with their chatbot.
Many lawmakers have called for laws requiring Big Tech to better protect against chatbots promoting unsafe behaviors such as suicide and self-harm on their platforms.
The bills signed into law by Newsom on Monday are intended to address some of those concerns.
The changes
One of the laws passed by California implements a series of safeguards geared toward AI chatbots.
SB 243 is the first state law of its kind and requires chatbots to disclose that they are AI and tell minors every three hours to “take a break.” Chatbots makers will also need to implement tools to protect against harmful behaviors and disclose certain instances to a crisis hotline.
The law allows California to maintain its lead in innovation while also holding companies accountable and prioritizing safety, Newsom said in a release.
In a statement to CNBC, OpenAI called the law a “meaningful move forward” for AI safety standards.
“By setting clear guardrails, California is helping shape a more responsible approach to AI development and deployment across the country,” the company said.
Another bill signed by Newsom, AB 56, requires that social media platforms including Instagram and Snapchat to add labels that warn users of the potential mental health risks associated with using those types of apps. AB 621, meanwhile, heighten penalties for companies whose platforms distribute deepfake pornography.
The other key law, known as AB 1043, requires that device makers, like Apple and Google, implement tools to verify user ages in their app stores. Some Big Tech companies have already endorsed the law’s safeguards, including Google and Meta.
Last month, Kareem Ghanem, Google’s senior director of government and affairs and public policy, called AB 1043 one of the “most thoughtful approaches” to keeping children safe online.
The impact to big tech
The new laws require a series of changes to many long-standing business models. But D.A. Davidson’s Gil Luria said companies should experience a “distributed” impact from these new measures, since all businesses are forced to accommodate the rules.
“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,” he said.
Other countries have already enacted rules tougher restrictions on AI. Last year, the European Union passed the AI Act that includes fines for companies that violate the laws’ framework that includes a social scoring systems.
Utah and Texas have also signed laws implementing AI safeguards for minors. The Utah law, for example, requires that Apple and Google to verify user ages and it requires parental permission for those under 18 to use certain apps. These laws have also raised questions over whether harsh restrictions violate free speech or bans are the most effective solution.
California isn’t the first jurisdiction to pass laws like these, but Newsom’s signings carry significance due to the size of the state’s population and the fact that many tech companies are based in the San Francisco Bay Area.
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