The GUARD Act: Congress Moves to Regulate AI Chatbots for Minors

Written by: Lee Merreot, Esq., CIPM, CIPP/US, CIPP/E, CDPO

Introduction

Artificial intelligence (AI) chatbots and companion applications have become increasingly integrated into daily life, offering everything from entertainment to emotional support. However, their rapid adoption has raised serious concerns about child safety. In response, a bipartisan group of U.S. senators introduced the Guidelines for User Age-verification and Responsible Dialogue Act of 2025 (GUARD Act), marking one of the most significant federal efforts to regulate generative AI interactions with minors.

 

Summary of the Bill

The GUARD Act (S.3062), introduced on October 28, 2025, by Senators Josh Hawley (R-MO), Richard Blumenthal (D-CT), Katie Britt (R-AL), Mark Warner (D-VA), and Chris Murphy (D-CT), establishes strict requirements for companies providing AI chatbot and companion services:

• Age Verification: Providers must implement robust age verification measures using government-issued IDs or other commercially reasonable methods.
• Disclosure Obligations: Chatbots must regularly remind users that they are not human and lack professional credentials.
• Content Restrictions: It is unlawful for AI chatbots or companions to engage in or simulate sexually explicit conduct or encourage violence, self-harm, or suicide.
• Account Creation Rules: Providers must require user accounts and verify age at creation and periodically thereafter.
• Data Security Mandates: Companies must implement safeguards to protect user data.

Violations could result in civil and criminal penalties, including fines up to $100,000 per incident.[1]

 

What the Bill Aims to Accomplish

The legislation seeks to protect minors from exploitative or manipulative AI systems. Lawmakers argue that these technologies can mimic affection, manipulate emotions, and expose children to harmful content. By requiring age verification and banning dangerous interactions, the GUARD Act aims to create a safer digital environment for young users.[2]

 

Potential Issues and Concerns

While the bill addresses urgent safety concerns, it raises several challenges:

• Privacy Risks: Age verification at scale could require storing sensitive identification data, creating new privacy concerns and data security vulnerabilities.
• Impact on Innovation: Critics warn that stringent compliance requirements may stifle AI development and limit beneficial applications, especially in the areas of education, mental health, and creative expression.
• Enforcement Complexity: Determining liability for harmful outputs in generative AI systems remains legally ambiguous, and enforcement against platforms outside of the US may be challenging if not impossible.

 

Signals for Future Legislation

The GUARD Act may serve as a blueprint for broader federal regulation of AI technologies, particularly those interacting with vulnerable populations. Combined with the Federal Trade Commission’s September 2025 inquiry into AI chatbot safety, this bill signals a growing trend toward comprehensive oversight of generative AI. Businesses should expect additional legislation in the coming months as policymakers seek to balance innovation with consumer protection.[3]

 

What This Means for Businesses

For technology companies, the GUARD Act underscores the urgency of implementing age verification systems, content moderation protocols, and data privacy and security safeguards. Failure to comply could result in significant financial penalties and reputational damage. Organizations should begin assessing their AI offerings now to ensure alignment with emerging regulatory standards. Proactive compliance planning will not only mitigate risk but also position companies as leaders in responsible AI development.

 

Call to Action

If your organization utilizes AI chatbots or provides other AI-driven services, now is the time to review your compliance strategies. This evolving area of law will not only be expanding in the future but will undoubtedly become exponentially more complex over time. Contact The Beckage Firm for guidance on navigating these new requirements and safeguarding your business against regulatory risk.

 

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[1] Mike Curley, Text – S.3062 – 119th Congress (2025-2026): GUARD Act, Congress.gov (October 28, 2025), https://www.congress.gov/bill/119th-congress/senate-bill/3062/text/is.;

[2] Josh Hawley, Hawley Introduces Bipartisan Bill Protecting Children from AI Chatbots, JoshHawley.senate.gov (October 28, 2025), https://www.hawley.senate.gov/hawley-introduces-bipartisan-bill-protecting-children-from-ai-chatbots-with-parents-colleagues/.;

[3] Federal Trade Commission, FTC Launches Inquiry into AI Chatbots Acting as Companions, FTC.gov (September 11, 2025), https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-launches-inquiry-ai-chatbots-acting-companions.;