State chatbot laws could create regulatory patchwork, new report warns

As state lawmakers move to regulate artificial intelligence chatbots aimed at children, a report published Monday warns that the growing regulatory patchwork could be difficult for technology companies to navigate and may not make children any safer from their harms.

The report, published by the Information Technology and Innovation Foundation, a technology policy think tank, found that nearly 100 state bills addressing chatbot safety have been introduced as of August. Researchers argued that lawmakers should resist adopting similar approaches used to regulate social media, such as broad age-verification requirements, content restrictions or blanket bans, and instead focus on targeted safeguards, transparency and parental controls.

The issue reflects a broader fight over how much authority states should have to regulate AI. State technology officials and lawmakers have argued that states need to retain authority to address emerging AI risks, while technology companies and some federal policymakers have warned that differing state requirements could create compliance challenges. A proposed federal moratorium on state AI laws was removed from a 2025 budget bill after facing widespread opposition from states.

The broader concern, according to the report, is that inconsistent state definitions and requirements could make it harder for developers to comply while diverting attention from safeguards that directly address documented risks to children.

“Congress is right to take children’s chatbot safety seriously,” Alex Ambrose, ITIF policy analyst and author of the report, said in a statement. “The challenge is making sure regulations actually reduce the risks children face. Policymakers should focus on safeguards that address documented harms instead of importing social media policies that have proven ineffective.”

Child safety has emerged as a particularly active area of state AI policymaking in recent years.

Last year, California lawmakers passed legislation targeting companion chatbots, requiring safeguards including protections against sexual content and disclosures that users are interacting with AI. Gov. Gavin Newsom vetoed the bill, saying its broad restrictions could have effectively banned minors from using conversational AI tools.

ITIF’s report urged policymakers to distinguish between general-purpose chatbots and systems designed to simulate emotional relationships. It recommends targeted rules for higher-risk applications, including safeguards around suicidal ideation and standards for chatbots providing professional services.

The report also calls for a “child flag” system that would allow parents to designate a child’s account at the operating-system level, reducing the need for individual AI services to collect additional age information.

“Protecting children and preserving innovation are not competing goals,” Ambrose said. “Thoughtful regulation should empower parents, improve transparency, and establish targeted safety standards that address documented harms without cutting young people off from tools that can support learning, creativity, and even access to mental health resources.”