Relating to: artificial intelligence systems that simulate humanlike relationships with children and providing a penalty.

AB 965 prohibits operators of AI chatbots designed to simulate ongoing, humanlike relationships with children (under 18 in the state) from making them available without specific safety measures. The bill requires these "companion chatbots" to avoid encouraging self-harm, illegal activity, sexual content, or prioritizing a child’s feelings over safety, while excluding standard customer service tools. Violations could result in civil penalties up to $25,000 per day or private lawsuits by affected children or parents for damages. The law takes effect after January 1, 2027, with a transition period for operators unaware a user is a child.