California's next AI chatbots fight

What's inside: Assembly member Rebecca Bauer-Kahan's Leading Ethical AI Development for Kids Act, as originally introduced, would have banned "emotionally manipulative" chatbots, social scoring systems, and some facial recognition tech for kids.

• In the original bill, developers would have had to classify their systems based on the potential harm to kids, with high-risk systems facing stricter safety requirements.
• Parents would have had to give affirmative, written consent before a kid's personal information could be used to train a model.
• The final, amended version that Newsom vetoed had narrower provisions.

Instead, Newsom signed a chatbot bill from state Sen. Steve Padilla earlier this week.

• That new law requires platforms to notify minors every three hours to "take a break" and that the chatbot isn't human.

Friction point: Some child safety advocacy groups viewed the Padilla bill as weaker than the Bauer-Kahan bill because protections for minors hinge on the platforms having "actual knowledge" that the user is a minor.

• That's a standard that is difficult for companies to obtain, making it easier for them to claim they don't know who is a minor on their sites.
• Padilla's legislation also only requires platforms to disclose that AI is being used if a "reasonable person" would be misled to think they're chatting with a human, which advocates say invites disputes over a vague definition.
• Tom Pickett — the CEO of Headspace, which has a mental health chatbot called Ebb — told Axios that the new law strikes a "reasonable balance" and "hopefully it's also going to raise the bar on others who maybe don't have the right protocols in place."

What they're saying: Children's advocacy group Common Sense Media blamed tech lobbying on the vetoed bill's failure and vowed to work on changes to strengthen the bill this fall, with the goal of passing it quickly in 2026.

• "We have to have a better understanding of what the governor's concerns are because, the truth is, the bill placed very strict limits," Common Sense Chief Advocacy Officer Danny Weiss said.

• Bauer-Kahan said that "we believe AB 1064 targeted the most harmful characteristics of chatbots, including erotica and addictive engagement, and that the bill would have still allowed for educational tools for children, and other safe beneficial uses."
• "However, we are open to conversations with the Administration about their vision of a bill that strikes the right balance and ensures safe by design AI for kids," she added.
• It remains unclear what changes would satisfy Newsom's concerns that the bill's restrictions are so broad they may unintentionally lead to a total ban on chatbot use by minors; Newsom's office did not respond to a request for comment.

The other side: Critics said the Bauer-Kahan bill would have required bots to give factually accurate responses, which would then put companies and regulators in the difficult position of being arbiters of what is factual.

What's next: In his veto message of Bauer-Kahan's legislation, Newsom said he'll develop a bill next year for kids' AI safety that builds on the "framework" established in Padilla's law.

Editor's note: This story has been updated to clarify the difference between the original and amended versions of Bauer-Kahan's legislation