AI Companion Chatbots Are Now Regulated. What Therapists Need to Know
Prices and facts checked October 13, 2026. We don't accept payment for rankings.
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What happened: in September 2025, the FTC ordered seven companies, including Alphabet, Meta, OpenAI, Character.AI, Snap and xAI, to explain how their AI companion chatbots test for and limit harm to children and teens (FTC, Sep 11, 2025). In October 2025, California enacted SB 243, which regulates companion chatbots, and AB 489, which bars AI from implying it's a licensed health professional (Epstein Becker Green).
Why it matters today: many clients now talk to AI companions between sessions, or instead of therapy. These laws shape what those products must do in a crisis, and AB 489 reaches any AI tool that presents itself as clinical care.
Not legal advice. These laws mostly regulate chatbot operators, not clinicians. Check your state's rules on AI in practice.
The laws at a glance
| Law | Status | What it requires |
|---|---|---|
| New York S. 3008 | Effective Nov 5, 2025 | Suicidal-ideation protocol; "not human" notice at the start and every 3 hours |
| California SB 243 | Effective Jan 1, 2026; annual reporting from Jul 1, 2027 | Crisis protocol with referrals, published online; AI disclosure; for known minors, break reminders every 3 hours and limits on explicit content; private right of action |
| California AB 489 | Signed Oct 11, 2025 | AI can't use terms implying its advice or assessments come from a licensed professional; each use is a separate violation |
| FTC 6(b) inquiry | Orders issued Sep 11, 2025 | Fact-finding on testing, age limits, monetization and data use |
Sources: Epstein Becker Green; Kelley Drye, Jan 19, 2026; DLA Piper; FTC.
SB 243 defines a companion chatbot as an AI system that gives adaptive, human-like responses and can meet a user's social needs. Customer-service bots, game characters and voice assistants are excluded (Kelley Drye).
Lawsuits and attorney general pressure
Litigation is moving alongside the laws. Parents and former users have sued OpenAI, alleging ChatGPT failed to respond appropriately to suicidal ideation. A letter from 42 state attorneys general warned that "sycophantic and delusional" chatbot outputs may break consumer-protection and children's privacy laws. In October 2025, Senators Padilla and Schiff asked the FTC to widen its inquiry to whether companies can detect and respond to mental health crises (Kelley Drye).
More states are following. Kelley Drye lists pending chatbot bills in Florida, Massachusetts, Missouri, New Jersey, Pennsylvania, Washington and Tennessee, so expect requirements like California's to spread.
How this connects to AI therapy bans
Separately, several states restrict AI in therapy itself. Illinois was first in August 2025, barring AI from making independent therapeutic decisions or interacting with clients therapeutically (Baker Botts). Our state AI therapy laws guide covers the full list.
Put together: companion bots must have safety protocols, AI can't pose as a clinician (in California), and in several states AI can't deliver therapy.
What this means in your practice
- Ask clients about AI use at intake and in sessions, without judgment. Companion chatbots are part of many clients' support systems now.
- Talk through the limits: these products must disclose they're AI and have crisis protocols, but they aren't clinicians.
- Check your own tools' wording. If you offer an AI intake bot or between-session app, avoid language that implies a licensed clinician is responding (AB 489).
- Keep crisis pathways human. Any AI touchpoint you offer should route risk disclosures to a person and to crisis resources.
- Document informed consent for any AI that interacts with clients.
FAQ
Do these laws apply to my AI note taker?
Generally no. Note tools aren't companion chatbots. Note-taking is covered by HIPAA and consent rules instead.
Can clients sue chatbot companies under SB 243?
SB 243 includes a private right of action for people injured by noncompliance. New York's law doesn't.
What did the FTC find?
The 6(b) orders are a study, not an enforcement action. No report had been published as of our last check.
Sources
Pages we used for this article, checked on or before the update date above.
- FTC, Sep 11, 2025 · ftc.gov
- Epstein Becker Green · ebglaw.com
- Kelley Drye, Jan 19, 2026 · kelleydrye.com
- DLA Piper · dlapiper.com
- Baker Botts · ourtake.bakerbotts.com
Changelog: Oct 13, 2026: first published.