US States Push AI Bills on Companion Chatbots in Toys and Ad Disclosure
California bills SB 867 and SB 1050 target AI companion chatbots in children's toys and require disclosure of AI use in advertisements, reflecting growing state-level regulatory momentum.
Several AI-related bills are moving through state legislatures, with California leading the charge on two fronts: protecting children from AI companion chatbots and requiring transparency in AI-generated advertising.
SB 867 would prohibit companion chatbots in toys marketed to children, citing concerns about emotional manipulation and data collection from minors. The bill responds to a growing category of AI-powered toys that can hold open-ended conversations with children, raising questions about psychological impact and privacy.
SB 1050 would require disclosure about the use of AI in advertisements — mandating that consumers be informed when ad content has been generated or substantially modified by artificial intelligence. The bill targets the growing use of AI-generated images, voiceovers, and copy in commercial advertising.
These bills reflect a pattern of state-level AI regulation filling the gap left by the absence of comprehensive federal AI legislation. The Transparency Coalition notes that AI-related bills are proliferating across multiple states, creating a patchwork of regulations that tech companies will need to navigate.
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