California just passed a groundbreaking rule that could reshape how artificial intelligence interacts with people. New California law requires AI to tell you it’s AI, making it the first state to mandate clear disclosure when users engage with chatbot systems that might appear human.
California Takes The Lead On AI Transparency
Governor Gavin Newsom signed Senate Bill 243 on October 13, 2025. The bill, described as the “first-in-the-nation AI chatbot safeguard,” was introduced by Senator Anthony Padilla. It aims to prevent AI chatbots—especially companion AIs—from misleading users into believing they’re human.
Under the new law, if “a reasonable person interacting with a companion chatbot would be misled to believe that the person is human,” developers must display a clear, conspicuous notice that identifies the chatbot as AI.
Safeguards To Protect Mental Health
Starting next year, some chatbot companies will also need to file annual reports to California’s Office of Suicide Prevention. These reports will detail the measures taken to detect, remove, and respond to suicidal ideation among users. The Office must make these findings public on its website, ensuring transparency and accountability in how AI systems handle sensitive conversations.
A Broader Push For Online Safety
Governor Newsom emphasized that the new California law requiring AI to tell you it’s AI is part of a larger strategy to make technology safer for young users. Alongside SB 243, the state introduced new online safety and age-gating laws for digital platforms and hardware devices aimed at protecting children.
“Emerging technology like chatbots and social media can inspire, educate, and connect – but without real guardrails, technology can also exploit, mislead, and endanger our kids,” said Newsom. “We can continue to lead in AI and technology, but we must do it responsibly.”
Linked To Another Landmark AI Bill
This announcement follows Newsom’s signing of Senate Bill 53, a landmark AI transparency law that sparked debate across the tech industry. Together, these laws position California as a pioneer in setting ethical standards for artificial intelligence, forcing companies to prioritize user awareness and data responsibility.
Why This Matters
As AI-powered tools—especially chatbots—become more advanced, they increasingly blur the line between human and machine conversation. The new California law requiring AI to tell you it’s AI addresses this growing concern by enforcing honesty and accountability from AI developers.
For everyday users, it means more clarity, trust, and safety when chatting with digital assistants or emotional support AIs. For tech companies, it signals a new era of AI regulation—one that could soon influence national or even global standards.
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