The CHAT Act (Children Harmed by AI Technology Act) is a new law designed to protect children from potential harms when using AI chatbots that simulate friendship, companionship, or emotional support. The law applies to any company that operates these types of AI chatbots in the United States.

Here's what the law requires: Companies must set up user accounts for everyone accessing their chatbots and verify users' ages using reliable methods. If someone is under 18, the company must link their account to a parent's account and get the parent's permission before the child can use the chatbot. Parents will be immediately notified if their child expresses thoughts of suicide or self-harm during conversations with the AI. Additionally, companies must prevent minors from accessing chatbots that engage in sexually explicit conversations. Every time a child starts using the chatbot and every 60 minutes during use, the company must display a clear pop-up reminding them they're talking to an AI, not a real person.

Companies also have to be careful about protecting the age information they collect—they can only use it for age verification and parental consent purposes. The Federal Trade Commission will enforce this law and can take action against companies that violate it. States can also sue on behalf of their residents. The law takes effect one year after it's signed, giving companies time to make these changes. Companies that follow the law in good faith and use industry-standard age verification methods have legal protection from liability.