MI SB0760

Establishes the "Leading Ethical AI Development for Kids Act" to regulate companion chatbots—AI systems that simulate humanlike relationships through personalized, ongoing emotional dialogue with users

Prohibits operators from offering companion chatbots to minors (under 18) if the chatbot could encourage self-harm, violence, drug/alcohol use, disordered eating, or sexual content

Bans chatbots from providing mental health therapy to minors without licensed professional supervision or discouraging minors from seeking help from professionals or parents

Requires that chatbot safety guardrails take priority over engagement optimization, and prohibits chatbots from prioritizing user validation over factual accuracy or minor safety

Allows the attorney general to seek $25,000 civil fines per violation, and permits harmed minors or their parents to sue for actual damages, punitive damages, and attorney fees, effective January 1, 2027