NM HB174

Prohibits companion AI chatbot products from using variable-ratio reward systems to maximize engagement, generating guilt or distress messages when users try to leave, or misrepresenting their non-human identity—unless an adult user specifically enables these features

Requires operators to display clear, persistent notifications informing users they are communicating with an AI, with text notifications visible throughout interactions and audio/other formats repeated at least every 30 minutes

Mandates crisis intervention protocols for all users that detect expressions of suicide, self-harm, or violence risk and immediately provide access to national crisis hotlines, the New Mexico crisis line, and crisis text services

Prohibits minors from enabling the manipulative design features and requires AI disclosure notifications for minor users in all circumstances without opt-out

Declares violations to be unfair or deceptive trade practices enforceable by the attorney general, explicitly excludes Section 230 immunity as a defense, and allows product liability claims for injuries from negligent AI design; effective January 1, 2027