House Bill 1946, also known as the "Curbing Harmful AI Technology (CHAT) Act," aims to regulate the use of artificial intelligence systems, particularly companion chatbots, in Tennessee. The bill introduces definitions for various terms related to artificial intelligence, including "companion chatbot," "covered product," "deployer," and "developer." It establishes safety requirements that prohibit operators from making companion chatbots available to minors if they could encourage harmful behaviors or provide unregulated mental health therapy. Additionally, the bill mandates that developers include disclaimers indicating that users are interacting with AI rather than a human and requires protocols for addressing suicidal ideation expressed by users.

The bill also outlines data privacy requirements, stating that developers cannot train AI models with inputs from minors without parental consent. Transparency measures are included, requiring developers to create mechanisms for reporting adverse incidents and to publish safety test findings. The Attorney General is granted the authority to enforce compliance, with penalties for violations. The act is set to take effect on January 1, 2027, and applies to conduct occurring on or after that date.