Chatbot Bills: Protection vs. Companions

Bills seeking to regulate chatbots are one of the biggest Al-related legislative trends in 2026, first emerging in prefiled measures released in late 2025.

These proposals generally fall into two distinct categories. One category focuses on consumer protection, often aligning with or mirroring UDAAP-style standards by establishing duties, prohibitions, and liability for companies that develop or deploy chatbots, particularly in commercial or financial contexts. The other category centers on companion chatbots, with an emphasis on guardrails for social or emotional interactions and heightened protections for children and minors who engage with these systems.

FOCUS will continue to monitor chatbot legislation in state legislatures across the country.