chatbot regulations; personal data; requirements

HB 2737 regulates chatbot providers in Arizona by requiring explicit user consent before using personal data or chat logs. It prohibits providers from processing personal data for chatbot outputs without affirmative consent, using chat logs to target advertisements, or processing minors' data without parental consent. The law mandates that consent requests must be clear, stand-alone, accessible to people with disabilities, and offer an equally prominent option to decline. Chatbot providers must also obtain separate consent to use adult users' data for training or profiling beyond fulfilling specific user requests. This directly affects companies developing or deploying chatbots within Arizona, imposing new data privacy requirements.