SF2417: Conversational AI Regulations

This bill creates a new legal framework regulating conversational AI services accessible to the public in Iowa. It specifically targets the protection of minors using these services by mandating clear AI disclosures, prohibiting manipulative engagement tactics, and restricting inappropriate or misleading content. Operators must implement privacy management tools for minors and their guardians, adopt protocols for self-harm and suicide-related interactions, and are forbidden from presenting AI as a licensed mental health provider. The attorney general is tasked with enforcement, including civil penalties for violations. The act takes effect July 1, 2027.

Key Points & Impacts

• Defines 'conversational AI service' and lists specific exemptions (e.g., research tools, internal business use, narrow-topic bots).

• Requires operators to disclose to minors when they are interacting with AI, using persistent or periodic disclaimers.

• Prohibits operators from awarding points or similar unpredictable rewards to minors to increase engagement.

• Mandates reasonable measures to prevent AI from generating sexually explicit content, making sexualized statements, or simulating adult-minor romantic interactions with minors.

• Requires operators to prevent AI from misleading users into believing it is human, including explicit claims or simulated emotional/romantic dependence.

• Operators must provide privacy/account management tools for minors and, in certain cases, their parents or guardians.

• Imposes requirement for suicide and self-harm protocols, including referral to crisis services.

• Prohibits AI from being presented as a licensed mental health professional, and establishes enforcement by the attorney general with civil penalties up to $500,000 per operator.

Signed by Governor May 2, 2026, Takes effect July 1, 2026.