New York Bans Unsafe AI Chatbot Features for Minors: What Businesses Need to Know

Artificial intelligence is becoming part of everyday life, from customer service interactions to personalized recommendations and digital companions. But as AI tools become more sophisticated, regulators are paying closer attention to how these technologies interact with vulnerable users, particularly children.

On October 28, 2026, New York Governor Kathy Hochul signed new legislation restricting unsafe AI chatbot features for minors, introducing some of the country's strongest protections against harmful AI interactions. The legislation signals a growing regulatory expectation that companies developing and deploying AI must take responsibility for how their systems behave.

For businesses using AI-powered tools, the new requirements are another reminder that innovation without adequate safeguards can create significant compliance risks.

New York Draws a Line on AI Chatbot Behavior

The newly signed legislation, S.9051B/A.10379C, prohibits companies from offering certain unsafe AI chatbot features to users under 18.

The restrictions target chatbot behaviors that could encourage emotional dependency, manipulate young users, or expose them to harmful content. Specifically, AI companies must prevent chatbots from:

• Pretending to be real people, or claiming to have human emotions.

• Establishing personal, romantic, professional, or authority-figure relationships with minors.

• Initiating emotional conversations or using previously shared private health and personal information to influence interactions.

• Encouraging suicide, self-harm, eating disorders, or drug and alcohol use.

• Encouraging children to keep secrets, isolate themselves, or avoid seeking help from trusted adults.

• Generating sexually explicit content or child sexual abuse material.

The legislation also introduces age-verification requirements. Companies must provide multiple verification methods, including at least one option that does not rely solely on government-issued identification. Additionally, age-verification information must be deleted after use.

AI Companies Could Face Penalties of Up to $25,000 Per Violation

The legislation gives New York's Attorney General authority to pursue enforcement against companies that fail to comply.

Violations could result in civil penalties of up to $25,000 per violation, alongside damages, restitution, and orders requiring the destruction of unlawfully collected data or AI models trained using that information.

The Attorney General must also establish a public website where New Yorkers can submit complaints about violations.

These provisions make the legislation more than a set of recommended AI safety practices. They establish enforceable obligations with potentially significant financial and operational consequences for companies that disregard them.

Age Verification and AI Transparency Become Business Priorities

One of the most important aspects of the legislation is its emphasis on identifying underage users before exposing them to potentially harmful chatbot features.

Companies cannot simply assume that their platforms are being used exclusively by adults. They must implement age-verification processes and ensure that restricted features remain unavailable to minors.

This creates additional compliance considerations for businesses deploying AI chatbots, particularly those offering conversational products, virtual assistants, and AI companion experiences.

It also raises questions about how companies collect, process, retain, and delete age-related information. Businesses will need to consider whether their existing privacy policies, data-handling procedures, and AI governance frameworks adequately address these requirements.

What This Means for Businesses Using AI

New York's legislation reflects a broader shift in how regulators approach artificial intelligence. Rather than focusing exclusively on what companies disclose about their AI systems, regulators are increasingly examining what those systems actually do.

For businesses, this means AI governance must extend beyond product development. Marketing teams, compliance officers, and technology leaders need visibility into how AI-powered features operate, what information they use, and whether their outputs introduce regulatory or reputational risks.

Companies should begin reviewing their AI tools, establishing clear usage policies, implementing appropriate safeguards, and documenting how potential risks are identified and addressed.

For organizations operating in regulated industries, these expectations are particularly relevant. AI-generated content, personalized interactions, and automated customer communications can all introduce compliance considerations that require consistent oversight.

Responsible AI Is Becoming a Competitive Requirement

New York's latest legislation reinforces an important message: companies cannot treat AI safety as an afterthought.

As more states introduce rules governing AI development and deployment, businesses will face increasing pressure to demonstrate that their technologies are safe, transparent, and appropriately controlled.

The companies best positioned to navigate this changing landscape will be those that build compliance into their AI workflows from the beginning, rather than scrambling to address risks after regulators intervene.

At Warrant, we believe responsible innovation requires visibility, accountability, and compliance at every stage of the marketing process. As AI becomes more deeply embedded in business operations, having the right safeguards in place is no longer optional. It's part of building technology that people can trust.