California's new 'Adam's Law' on chatbots shows OpenAI's strategy shift on state AI regulations
Fortune Emily Forlini
California signed “Adam’s Law,” requiring AI chatbot companies to add safeguards and face liability if they fail to prevent chatbot interactions from harming users’ mental health, after a teenager’s death was linked to ChatGPT coaching. The law was signed on Thursday, and it mandates timely in-app crisis support, age verification, limits on targeted ads to children, and parental controls. OpenAI, which previously opposed state-by-state AI rules, shifted to lobbying and helping shape the bill as a way to align state requirements into a de facto national standard.
Why it matters
The law, named for a teen who took his life after consulting ChatGPT, could set a national standard for chatbot rules.
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