US States Pass AI Laws Targeting Ethics and Privacy

A wave of artificial intelligence regulation is sweeping across the United States, with 78 chatbot-related bills filed in 27 states in early 2026. In California, the California State Senate passed Senate Bill 574 on January 30, which seeks to codify California State Bar ethical guidelines for attorneys and arbitrators to prevent AI hallucinations in legal filings.

Legislative activity expanded during the first week of March 2026. Oregon passed a chatbot bill focusing on AI companions, and Utah enacted the Digital Content Provenance Standards Act. Nebraska passed legislation regulating dynamic pricing for transportation networks, while the Florida Senate passed an AI Bill of Rights, though it faces an unlikely path to House approval. In Washington, both chatbot and provenance bills have passed the Senate and await House concurrence, and Arizona's Senate passed a provenance bill by a narrow margin.

Beyond legislation, the industry is facing legal challenges regarding data privacy. Otter.ai is currently defending a class action lawsuit alleging the company violated federal wiretapping and biometric privacy laws by creating speaker voiceprints without consent. The company filed a motion to dismiss the case on January 1, 2026.