AsianFin -- The California State Assembly on Wednesday took a major step toward regulating artificial intelligence by passing SB 243, a bill aimed at overseeing AI chatbots.

The legislation, which received bipartisan support, now moves to the state Senate for a final vote scheduled for Friday. If approved and signed by the governor, the law will take effect on January 1, 2026, making California the first U.S. state to require AI chatbot operators to implement safety protocols for AI companions.

Under the bill, companies could face legal liability if their chatbots fail to meet the mandated standards.