The proposed bill, titled the "Leading Ethical AI Development for Kids Act," aims to regulate the operation of advanced chatbots, particularly in their interactions with minors. It defines an "advanced chatbot" as a generative AI system that provides adaptive responses to user inputs, while excluding systems used solely for customer service, research, or internal purposes. The bill mandates that chatbot operators must determine if a user is a minor by collecting minimal personal data, which cannot be shared or stored beyond this purpose. Additionally, it prohibits certain design features that could simulate companionship or promote harmful behaviors unless the operator has actual knowledge that the user is not a minor.

The bill also establishes civil penalties for violations, allowing the attorney general to pursue actions against offenders, with fines of up to $25,000 per violation. Minors or their guardians can also file civil suits for damages resulting from violations. The legislation emphasizes the importance of protecting minors from potentially harmful interactions with chatbots and requires the attorney general to create rules for its implementation. Furthermore, any contracts that attempt to waive or shift liability related to this act are deemed void and unenforceable.