Washington is policing artificial intelligence, with new laws signed by Gov. Bob Ferguson setting guardrails for companion chatbots and requiring disclosure when images are made or edited by AI.

Why it matters: The new Washington laws highlight how policymakers are responding as AI use rapidly expands in business and everyday life.

What's inside: House Bill 1170 will require large AI companies to identify when images, video, or audio are altered or created using their systems "to the extent commercially and technically reasonable."

• A watermark imposed on an image, or data embedded in the digital file, could meet the mandatory disclosure requirement.
• Companies must also offer tools to help detect AI-modified content.

House Bill 2225 takes aim at companion chatbots — AI systems designed to mimic human conversation and build ongoing relationships with users.

• Companies that run them must tell users upfront that they're talking to a machine and must remind them every three hours.
• If the user is a minor, those reminders must come every hour, and the company must prevent the chatbot from using manipulative tactics to deepen emotional attachment.
• Companies must also have a plan for flagging users who express suicidal thoughts or self-harm and directing them to a crisis line or other resources.

What they're saying: The chatbot regulations are partly in response to stories of teens "turning to these chatbots in times of distress before quite tragically ultimately ending their lives," Ferguson said at last week's bill signing ceremony.

• When it comes to digital media, the governor added, it is important to "know what is human-made and what is machine-generated."
• "By making it clear when AI generates media, Washingtonians are better protected against confusion, deception and misinformation," he said.

The other side: Some critics object to the chatbot law allowing private individuals to sue over violations, arguing enforcement should be left to state regulators.

• "Allowing these standards to be defined through private lawsuits, rather than through agency rulemaking or coordinated enforcement, may create uncertainty for responsible actors seeking to comply in good faith," the Washington Liability Reform Coalition wrote in a letter asking Ferguson to veto part of the legislation.
• Ferguson ultimately signed the chatbot bill without changes.

What's next: The AI disclosure law will take effect in February 2027, while the chatbot regulation law will take effect in January.

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Seattle's unemployment rate is higher than the state's — a rare reversal for the region's job market.

The big picture: Seattle's unemployment rate surpassed the state's in November and has continued rising, reaching 5.2% in January versus 5.0% statewide, according to state data shared with Axios.

• The Seattle metro area lost roughly 3,200 jobs over the past year, state Employment Security Department (ESD) economist Paul Turek said.
• It's an unusual shift, Turek told Axios; the local rate has only exceeded the state's during major economic disruptions like the Great Recession and the pandemic.

State of play: Hiring has been slowing across Washington, Turek said, as it has nationally. According to ESD's January report:

• Private-sector employment statewide rose by 16,700 jobs over the past year, while government jobs fell by 7,600.
• Growth was concentrated in health care (+14,900), transportation and warehousing (+9,000) and leisure and hospitality (+3,400).
• Losses were led by manufacturing (-4,800) and retail (-4,100), with additional declines in professional services, especially administrative support roles.

What's next: The latest data reflects January 2026, not current conditions.

• The ESD is behind on releases due to federal data disruptions and annual benchmarking, but officials plan to release February and March reports later this month to catch up, Turek said.
• Recent layoffs in tech and other sectors are expected to be reflected in coming reports.

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Kinder Joy Eggs dominate Washington Easter baskets to an unusual degree, according to DoorDash.

The company analyzed which Easter basket treats are uniquely popular in each state, based on ordering data from last year.

• Kinder Joy Eggs — which include a surprise toy, plus layers of chocolate and sweet cream that you scoop out to eat — took the top spot in Washington and three other states.
• Reese's is the national MVP, with Peanut Butter Bunnies uniquely popular across the country.

💭 Our thought bubble: We'll take either.