This bill aims to regulate the use of chatbots by minors in South Dakota by establishing specific definitions and requirements for deployers of such technology. It introduces new terminology related to artificial intelligence, including definitions for "age verification," "AI-companion," "therapy chatbot," and "human-like features." The bill mandates that deployers must implement an age verification system for chatbots designed as AI-companions or those with human-like features, prohibiting their use by minors unless all human-like features are removed. Additionally, deployers are required to maintain a system to address emergency situations and can only collect user information necessary for legitimate purposes.

Furthermore, the bill outlines conditions under which therapy chatbots can be made available to minors, including the necessity for disclaimers about the chatbot's nature, assessments by licensed mental health professionals, and the provision of clinical trial data demonstrating safety and efficacy. Violations of these provisions can result in civil penalties of up to $5,000 per incident, with the attorney general responsible for enforcement. The bill also includes a process for deployers to rectify violations to avoid penalties, while clarifying that it does not create a new private right of action for individuals.