Newsom Vetoes Most-Watched Children's AI Bill, Signs 16 Others Targeting Tech

California Gov. Gavin Newsom vetoed legislation that would have prohibited developers from offering companion AI chatbots for children unless the companies can promise the software won’t encourage harmful behavior.

Sacramento players across the political spectrum watched the legislation closely, with advocates issuing press releases, open letters and research reports in hopes of swaying California’s tech-friendly governor.

In his veto message published Monday, Newsom wrote that AB-1064 could lead to a total ban on minors using conversational AI tools. “AI is already shaping the world, and it is imperative that adolescents learn how to safely interact with AI systems,” Newsom wrote.

“We’re sorely disappointed to see Governor Newsom side with Big Tech over the more than 150 families who have suffered the most unimaginable loss: the passing of their child, encouraged by companion AI,” Assemblymember Rebecca Bauer-Kahan of Orinda, the bill’s author, wrote in a statement, noting the bill was sponsored by Common Sense Media, California Attorney General Rob Bonta, and more than 20 organizations.

“These AI companies know the risks their products pose. They’ve made purposeful design decisions that put kids in harm’s way, creating chatbots that form dangerous emotional bonds with vulnerable young people,” she added.

“We’ve seen suicides lately. We’ve seen all sorts of mental health disruptions caused by AI companions. That said, the fight is just beginning,” Common Sense Media CEO Jim Steyer told KQED. “California is clearly leading the way in the United States and globally on these issues, and the next year or two are going to be absolutely critical in defining regulations, guardrails and a common sense future for the big tech industry.”

The trade group TechNet lobbied heavily against the bill, running ads that warned that Bauer-Kahan’s bill could deny children access to critical tools they need to succeed.

“We appreciate Governor Newsom’s thoughtful consideration and ultimate veto of this proposed legislation,” wrote Robert Boykin, TechNet’s Executive Director for California and the Southwest. “While TechNet shares the goal of AB 1064, the bill fails to meet its stated objectives while threatening students’ access to valuable AI-driven learning tools, potentially life-saving medical treatments, crisis response interventions, safety mechanisms, and other valuable AI technologies.”

The host of AI-related bills that made it to Newsom’s desk this legislative session presented him with a political balancing act, as he eyes a run for the White House. Many of the bills were opposed by trade associations heavily bankrolled by Silicon Valley, and California is home to 32 of the 50 top AI companies worldwide.

As if anticipating the blowback from child safety advocates, Newsom’s office released a list of 16 AI bills he approved this session, some focused on children. “California has long stood as a bold leader in protecting children from the danger of emerging technology,” the statement read.

On the list: SB 243 by Sen. Steve Padilla, D-San Diego, which placed softer limits on AI chatbots for kids. Advocacy groups, including Common Sense Media and Tech Oversight California, pulled their support from the bill in mid-September, arguing industry-friendly amendments weakened it and could establish a “dangerous” precedent for other states and countries taking California’s lead on AI regulation.

In a similar vein, Newsom signed an industry-friendly version of SB-53 by Sen. Scott Wiener (D-San Francisco), after his original effort became target No. 1 for Silicon Valley lobbyists last legislative session and died on Newsom’s desk.

But not all the bills Newsom signed this legislation session lack teeth.

AB 621, for instance, expands the ability of deepfake pornography victims to sue anyone who creates, digitally alters, or distributes a sexually explicit image or video in which they appear to engage in sexual conduct without their consent. The expanded private right of action is considered a notable strength when most other AI bills rely on regulatory enforcement, penalties, or agency reporting to sway business practices.

Steyer said he was happy to see Newsom’s signature on AB 56, which supporters say will require first-in-the-nation warning labels on social media, similar to what California has mandated on packaging for alcohol and cigarettes.

“It’s clear that Gov. Newsom, and also the first partner, Jennifer Siebel Newsom, who’s heavily involved in all this legislation, have listened to parents, and advocacy groups around the state,” Steyer said.