California has become the first state in the U.S. to implement regulations for AI companion chatbots, focusing on transparency and user safety. The new law mandates that chatbot developers disclose the AI nature of their products and ensure ethical data usage to protect consumers.

Tesla plans to expand its robotaxi service in California, but regulators have clarified that it must operate with human drivers due to restrictions on autonomous vehicle transport. The company will offer rides to friends and family of employees and select members of the public, but only using non-autonomous vehicles, while facing scrutiny over its driver assistance marketing practices.