Leading Ethical AI Development (LEAD) for Kids Act.

Assembly Member Bauer-Kahan's Leading Ethical AI Development (LEAD) for Kids Act establishes new restrictions on artificial intelligence systems that interact with California children, prohibiting developers from using minors' personal information to train AI systems without explicit consent and barring the creation of AI products specifically intended for child use.

The legislation defines "covered products" as AI systems that include companion chatbots capable of providing mental health therapy, fostering emotional attachments, or manipulating children into harmful behaviors. It also encompasses systems that collect biometric information, generate social scores, assess emotional states outside medical settings, or scrape children's images without parental consent. Under the act, developers and deployers must implement measures to prevent children from accessing AI products not explicitly designed for their use, while data sharing agreements involving children's personal information require authorization from parents of children under 13 or direct consent from those aged 13-16.

The Attorney General may pursue civil penalties of $25,000 per violation and seek injunctive relief for infractions. Children who experience actual harm from covered products, or their guardians, maintain the right to file civil actions for damages, attorney fees, and other remedies. The act also protects employees who report potential violations from retaliation and prohibits false statements about compliance with its provisions.