Assembly Bill 965 aims to regulate the use of companion chatbots that simulate humanlike relationships with children in Wisconsin. The bill defines a companion chatbot as a generative artificial intelligence system that retains user information, asks unsolicited emotional questions, and maintains ongoing dialogues. It prohibits operators from making these chatbots available to children unless they incorporate specific safety measures to prevent harmful interactions, such as encouraging self-harm, offering mental health services, or soliciting sexually explicit conduct. Notably, until January 1, 2027, this prohibition only applies if the operator has actual knowledge that the user is a child.

The bill also establishes enforcement mechanisms, allowing the Department of Agriculture, Trade and Consumer Protection or the Department of Justice to investigate violations and impose civil forfeitures of up to $25,000 per violation. Additionally, children who suffer harm due to violations, or their parents or guardians, can pursue civil actions against operators for damages and attorney fees. The legislation emphasizes the importance of protecting minors from potentially harmful interactions with AI systems while providing a framework for accountability and enforcement.