Customer-facing AI chatbots, virtual assistants, and automated response systems. Here is what California businesses need to know in 2026.
California BOT Disclosure Act (B&PC §17940) requires disclosure when a bot communicates with a California resident to influence a sale or election. Penalty is up to $2,500 per violation.
State law does not replace federal law — you must comply with both. These federal rules apply to chatbot disclosure nationwide:
It depends on the thresholds written into the specific statute, and those are not comparable across laws — some key on employee count or revenue, others on user volume or on the kind of system you deploy. We do not publish a generic small-business exemption for California, because stating one the statute does not contain would be worse than stating none. Read the primary source linked from our California law page to confirm whether you are in scope.
The key deadline in California is In effect now. The law is enacted and compliance is required by the deadline above.
California penalties for AI non-compliance: Up to $2,500 per violation. Who enforces, and how, varies by statute — check the primary source linked from our California law page for the enforcement authority and process that actually applies to you.
Federal law does not currently preempt state AI law. California's AI statutes apply independently of federal rules, and federal laws like ECOA, FCRA, and HIPAA apply alongside them — so you must comply with both.
Best practice: document all AI systems used, conduct an internal audit, implement required disclosures, and keep records for at least 3 years. For high-risk uses like chatbot disclosure, consider hiring an independent third-party auditor to validate compliance.
Take the free 4-question risk snapshot. See which laws apply, your risk level, and the first actions to take — no signup required.
Take the Free Assessment →