AI Applied: Covering AI News, Interviews and Tools - ChatGPT, Midjourney, Gemini, OpenAI, Anthropic California Regulates AI Chatbots Amidst OpenAI's Bold Moves
Oct 24, 2025
California is stepping up with a new law that mandates identity disclosure for AI companionship chatbots. This move aims to protect minors from inappropriate content. On the other hand, OpenAI has sparked debate by allowing adult content for verified users, raising questions about user freedom versus safety. Financial motivations are driving these policies, as OpenAI seeks to boost revenue amidst massive operational costs. The tension between enterprise productivity and personal companionship features adds another layer to the evolving landscape of AI.
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California's New Guardrails For Chatbots
- California's SB243 forces chatbots to disclose identity, add suicide-prevention protocols, and protect minors from sexual content.
- The law also enables reporting and legal accountability for families, increasing operator responsibilities.
OpenAI's Sudden Shift Toward Adult Content
- OpenAI signaled adult erotica access for verified adults, reversing previous stricter content posture.
- This switch clashes with safety claims and surprised many who saw OpenAI as cautious about harm prevention.
Consider Financial Motives Behind AI Policy
- Expect product and policy moves to be driven by revenue and infrastructure commitments.
- Evaluate vendors' financial pressures when choosing AI platforms and anticipate rapid feature shifts.