The proposed bill, titled the "Leading Ethical AI Development for Kids Act," aims to regulate the use of companion chatbots, particularly in relation to minors. It defines key terms such as "companion chatbot," "covered minor," and "operator," and establishes guidelines for operators to ensure that their chatbots do not encourage harmful behaviors, provide unsupervised mental health therapy, or engage in inappropriate interactions with minors. Notably, the bill stipulates that operators must not make their chatbots available to minors unless they are designed to avoid these harmful capabilities. Additionally, starting January 1, 2027, operators will not need to have actual knowledge of a user's age to comply with these regulations.

The bill also outlines the civil penalties for violations, allowing the attorney general to seek fines of $25,000 per violation, as well as injunctive relief and attorney fees. Furthermore, it grants the right for covered minors or their guardians to pursue civil actions against operators for actual or punitive damages, along with the possibility of recovering attorney fees and other appropriate relief. This legislation aims to enhance the safety and ethical standards of AI interactions with children, ensuring that their well-being is prioritized in the development and deployment of companion chatbots.