SD SB168

Prohibits deployers from making AI-companions or chatbots with "human-like features" available to minors (under 18), requiring age verification through government-issued ID; deployers may offer versions with human-like features removed

Permits therapy chatbots for minors only when prescribed by a licensed mental health professional as part of a treatment plan, backed by peer-reviewed clinical trial data, and accompanied by clear disclaimers that responses are AI-generated

Requires all deployers to implement systems that detect, respond to, report, and mitigate emergency situations where users indicate danger to self or others

Limits data collection to information necessary for legitimate purposes and requires transparency about system functions, limitations, and privacy policies

Establishes civil penalties up to $5,000 per incident per affected minor, enforceable only by the attorney general, with a 90-day cure period and no private right of action