This bill establishes new regulations for chatbot deployers in Iowa, focusing on the safety and well-being of users, particularly minors. It defines key terms such as "AI companion," "chatbot," "deployer," and "therapeutic chatbot," and mandates that deployers implement protocols to detect and mitigate harm caused by chatbots. Additionally, it requires deployers to limit data collection to what is necessary for the chatbot's purpose and to implement reasonable age verification measures to prevent minors from using AI companions. The bill also prohibits the deployment of chatbots designed to impersonate real individuals without proper permission and sets specific requirements for therapeutic chatbots intended for minors.

To enforce these provisions, the bill grants the attorney general the authority to seek injunctions and imposes civil penalties for violations, with fines up to $2,500 per violation or $7,500 for violations of injunctions. Furthermore, it allows minors who use non-compliant chatbots to pursue legal action for damages, including punitive damages, emotional distress damages, court costs, and attorney fees. The bill aims to ensure that chatbot interactions are safe and responsible, particularly for vulnerable populations like minors.