As previously reported, policymakers continue to focus on regulating AI companion chatbots, particularly when these technologies are integrated into products designed for children. Several proposals advancing in California and New York could directly impact toys that incorporate AI-powered conversational features, while a growing number of states have enacted broader AI companion chatbot laws this year.
Key state developments include:
- California SB 867: The California Senate unanimously passed SB 867 last week, which would impose a four-year moratorium on the manufacture and sale of toys intended for children under age 18 that contain an AI companion chatbot. The measure is expected to be heard in an Assembly policy committee in the coming weeks.
- California SB 1119 and AB 2023: California lawmakers also advanced SB 1119 and AB 2023, which would establish requirements and restrictions for products containing AI companion chatbots across all sectors. Both bills passed in their respective chambers with strong bipartisan support. The Toy Association remains engaged with an industry coalition as negotiations on the legislation continue through the summer.
- New York AB 11144 and SB 9408: New York's companion bills addressing AI companion chatbots in toys continue to move forward. Both measures are currently awaiting floor votes in their respective chambers.
- Additional State Activity: At least 10 states have enacted laws in 2026 related to AI companion chatbots or similar AI technologies, including Colorado, Hawaii, Idaho, Nebraska, Oregon, Washington, Connecticut, Georgia, Iowa, and Maine. The Toy Association will distribute a mid-year update on this legislation in July.
The Toy Association will keep members informed of any policy developments regarding AI. For more information on The Toy Association’s advocacy initiatives at the state level or to join the State Government Affairs Committee, members may contact Charlotte Hickcox, director of state government affairs (Eastern states), and Lindsey Hueer, senior manager of state government affairs (Western states).