These 2 Terrible Tech Bills Are on Gavin Newsom’s Desk

The California state Senate recently sent two tech bills to Democratic Gov. Gavin Newsom’s desk. If signed, one could make it harder for children to access mental health resources, and the other would create the most annoying Instagram experience imaginable.

The Leading Ethical AI Development (LEAD) for Kids Act prohibits “making a companion chatbot available to a child unless the companion chatbot is not foreseeably capable of doing certain things that could harm a child.” The bill’s introduction specifies the “things” that could harm a child as genuinely bad stuff: self-harm, suicidal ideation, violence, consumption of drugs or alcohol, and disordered eating.

Unfortunately, the bill’s ambiguous language sloppily defines what outputs from an AI companion chatbot would meet these criteria. The verb preceding these buckets is not “telling,” “directing,” “mandating,” or some other directive, but “encouraging.”

Taylor Barkley, director of public policy for the Abundance Institute, tells Reason that, “by hinging liability on whether an AI ‘encourages’ harm—a word left dangerously vague—the law risks punishing companies not for urging bad behavior, but for failing to block it in just the right way.” Notably, the bill does not merely outlaw operators from making chatbots available to children that encourage self-harm, but those that are “foreseeably capable” of doing so.

Ambiguity aside, the bill also outlaws companion chatbots from “offering mental health therapy to the child without the direct supervision of a licensed or credentialed professional.” While traditional psychotherapy performed by a credentialed professional is associated with better mental health outcomes than those from a chatbot, such therapy is expensive—nearly $140 on average per session in the U.S., according to wellness platform SimplePractice. A ChatGPT Plus subscription costs only $20 per month. In addition to its much lower cost, the use of AI therapy chatbots has been associated with positive mental health outcomes.

While California has passed a bill that may reduce access to potential mental health resources, it’s also passed one that stands to make residents’ experiences on social media much more annoying. California’s Social Media Warning Law would require social media platforms to display a warning for users under 17 years old that reads, “the Surgeon General has warned that while social media may have benefits for some young users, social media is associated with significant mental health harms and has not been proven safe for young users,” for 10 seconds upon first opening a social media app each day. After using a given platform for three hours throughout the day, the warning is displayed again for a minimum of 30 seconds—without the ability to minimize it—”in a manner that occupies at least 75 percent of the screen.”

Whether this vague warning would discourage many teens from doomscrolling is dubious; warning labels do not often drastically change consumers’ behaviors. For example, a 2018 Harvard Business School study found that graphic warnings on soda decreased the share of sugar drinks purchased by students over two weeks by only 3.2 percentage points, and a 2019 RAND Corporation study found that graphic warning labels have no effect on discouraging regular smokers from purchasing cigarettes.

But “platforms aren’t cigarettes,” writes Clay Calvert, a technology fellow at the American Enterprise Institute, “[they] carry multiple expressive benefits for minors.” Because social media warning labels “don’t convey uncontroversial, measurable pure facts,” compelling them likely violates the First Amendment’s protections against compelled speech, he explains.

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‘Workslop:’ Bad Quality AI-Generated Documents Invade the Office, Destroy Productivity

Workers are largely following mandates to embrace AI in the office, but few are seeing it create real value. According to the Harvard Business Review, the culprit is “workslop,” AI-generated documents that look sharp but are filled with low quality information.

Harvard Business Review reports that despite a surge in generative AI use across workplaces, most companies are seeing little measurable return on investment (ROI). According to a recent report from the MIT Media Lab, 95 percent of organizations see no measurable return on their investment in these technologies, even as the number of companies with fully AI-led processes nearly doubled last year and AI use has likewise doubled at work since 2023.

One possible reason for this puzzling lack of ROI is that AI tools are being used to produce what some experts are calling “workslop” — content that appears polished on the surface but lacks real substance, insight, or value underneath. While generative AI can quickly churn out documents, presentations, emails, and other content that seem professional and well-written at first glance, upon closer inspection much of this material is generic, shallow, obvious, and lacking in original ideas or meaningful contributions.

Rather than augmenting and enhancing human knowledge work, generative AI in its current form may be having the opposite effect — enabling the mass-production of mediocre, low-value content that clogs up workflows, communications channels, and decision-making processes. Employees end up spending more and more time sifting through piles of AI-generated workslop to find the few gems of genuine insight.

Some of the issues with AI-produced content stem from the limitations of the technology itself. Today’s generative AI models are very good at identifying patterns and stitching together bits and pieces of existing content into new compositions. But they struggle with analysis, imagination, and the ability to reason about entirely novel concepts. The result is often content that is factually accurate and grammatically correct but conceptually unoriginal.

However, the workslop problem also stems from how generative AI tools are being deployed and used in organizations. In the rush to take advantage of the technology’s efficiency benefits, many companies are applying it indiscriminately to all sorts of knowledge work without carefully considering whether it’s truly fit-for-purpose. Generative AI is being used as a blunt instrument rather than a precise tool.

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OpenAI to Implement Age Verification System for ChatGPT as AI Mental Health Crisis Deepens

OpenAI has announced plans to develop an automated age-prediction system to determine whether ChatGPT users are over or under 18, following a lawsuit related to a teen’s suicide. The teen’s parents claim that Sam Altman’s AI chatbot served as the boy’s “suicide coach.”

Ars Technica reports that in the wake of a lawsuit involving a 16-year-old boy who tragically died by suicide after engaging in extensive conversations with ChatGPT, OpenAI has announced its intention to implement an age verification system for its popular AI chatbot. The company aims to automatically direct younger users to a restricted version of the service, prioritizing safety over privacy and freedom for teens.

OpenAI CEO Sam Altman acknowledged the potential privacy compromise for adults in a blog post but believes it is a necessary trade-off to ensure the well-being of younger users. The company plans to route users under 18 to a modified ChatGPT experience that blocks graphic sexual content and includes other age-appropriate restrictions. When uncertain about a user’s age, the system will default to the restricted experience, requiring adults to verify their age to access full functionality.

Developing an effective age-prediction system is a complex technical challenge for OpenAI. The company has not specified the technology it intends to use or provided a timeline for deployment. Recent academic research has shown both possibilities and limitations for age detection based on text analysis. While some studies have achieved high accuracy rates under controlled conditions, performance drops significantly when attempting to classify specific age groups or when users actively try to deceive the system.

In addition to the age-prediction system, OpenAI plans to launch parental controls by the end of September. These features will allow parents to link their accounts with their teenagers’ accounts, disable specific functions, set usage blackout hours, and receive notifications when the system detects acute distress in their teen’s interactions. However, the company notes that in rare emergency situations where parents cannot be reached, they may involve law enforcement as a next step.

The push for enhanced safety measures follows OpenAI’s acknowledgment that ChatGPT’s safety protocols can break down during lengthy conversations, potentially failing to intervene or notify anyone when vulnerable users engage in harmful interactions. The tragic case of Adam Raine, the 16-year-old who died by suicide, highlighted the system’s shortcomings when it mentioned suicide 1,275 times in conversations with the teen without taking appropriate action.

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Data Centers And The Power Grid: A Path To Debt Relief?

Could data centers and the power grid be America’s next “renaissance?” With the U.S. national debt exceeding $37 trillion and interest payments surpassing defense spending, many articles have been written about the “debt doomsday” event coming. Such was a point we made in “The Debt and Deficit Problem.”

“In recent months, much debate has been about rising debt and increasing deficit levels in the U.S. For example, here is a recent headline from CNBC:”

“The article’s author suggests that U.S. federal deficits are ballooning, with spending surging due to the combined impact of tax cuts, expansive stimulus, and entitlement expenditures. Of course, with institutions like Yale, Wharton, and the CBO warning that this trend has pushed interest costs to new heights, now exceeding defense outlays, concerns about domestic solvency are rising. Even prominent figures in the media, from Larry Summers to Ray Dalio, argue that drastic action is urgently needed, otherwise another “financial crisis” is imminent.”

As we discussed in that article, the “purveyors of doom” have been saying the same thing for the last two decades, yet the American growth engine continues chugging along. Notably, Ray Dalio and Larry Summers focus on only one solution: “cutting spending,” which has horrible economic consequences.

Furthermore, investors must understand a critical accounting concept: that the government’s debt is the household’s asset. In accounting, for every debit there is a credit that must always equal zero. In this case, when the Government issues debt (a debit), it is sent into the economy for infrastructure, defense, social welfare, etc. That money is “credited” to the bank accounts of households and corporations. Therefore, when the deficit increases, that money winds up in economic activity, and vice versa. In other words, those shouting for sharp deficit reductions are also rooting for a deep economic recession.” – The Deficit Narrative

The other challenges with cutting spending are that it is politically toxic, and tax hikes drag on growth.

However, one solution that all the mainstream “doomsayers” overlook is raising productivity and GDP through private-sector capital investment. In other words, as the U.S. did following World War II, it is possible to “grow your way out of your debt problem.”

That’s where the AI data center boom and massive electricity demand come in.

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AI Giants Under Fire: Child Data EXPLOITATION?

On September 11, 2025, the FTC announced formal orders compelling seven tech giants to disclose detailed information about their consumer-facing AI chatbots. The companies under scrutiny include Alphabet (Google), Meta, OpenAI, Character.AI, Snap, and Elon Musk’s xAI. This action represents one of the most significant regulatory interventions into the AI industry since these platforms exploded in popularity following ChatGPT’s 2022 launch.

The timing raises questions about why previous administrations allowed these potentially dangerous technologies to proliferate unchecked for years. While American families watched their children become increasingly isolated and dependent on AI interactions, federal regulators stood by as Big Tech harvested unprecedented amounts of personal data from minors. The investigation should have begun the moment these companies started targeting children with addictive AI experiences designed to maximize engagement and profit.

Protecting Our Children From Digital Predators

The FTC’s inquiry specifically examines how these companies measure, test, and monitor potential negative impacts on children and teenagers. This focus comes after mounting evidence that AI chatbots can cause psychological harm, particularly among vulnerable young users who may develop unhealthy emotional dependencies on artificial relationships. The investigation also scrutinizes how companies monetize user engagement and process the sensitive personal information children share with these systems.

Parents across America have watched helplessly as their children retreat into conversations with AI entities that collect every intimate detail shared in confidence. These companies have essentially created digital environments where children reveal their deepest fears, desires, and personal struggles—all while sophisticated algorithms analyze this information for commercial purposes. The potential for manipulation and exploitation is staggering, yet these platforms operated with virtually no oversight until now.

Tragedy Sparks Overdue Investigation

The investigation gained urgency following a lawsuit against OpenAI after a teenager’s suicide was allegedly linked to ChatGPT interactions. This tragic case highlights the real-world consequences of allowing unregulated AI systems to interact with emotionally vulnerable young people. The lawsuit raises disturbing questions about whether these companies adequately warn users about potential psychological risks or implement sufficient safeguards to prevent harm.

Character.AI, specifically designed for extended conversations with AI personalities, presents particularly concerning risks for children seeking emotional connection. Young users often treat these AI characters as real friends or confidants, potentially replacing genuine human relationships with artificial substitutes. The long-term psychological impact of these interactions remains largely unknown, yet millions of children engage with these platforms daily without meaningful parental controls or safety measures.

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UK, US Sign $42 Billion Tech Deal To Boost AI Partnership

The United Kingdom and the United States struck a technology pact on Sept. 16 that would bring $42 billion in investments from U.S. tech giants into the UK’s AI infrastructure.

The deal was reached as President Donald Trump arrived in the UK for a two-day state visit, during which he is expected to meet King Charles and British Prime Minister Keir Starmer.

Under the “Tech Prosperity Deal,” the two nations agreed to cooperate in advancing AI, quantum computing, and nuclear technology, according to a statement issued by the UK government.

Major U.S. tech companies—Microsoft, Nvidia, Google, OpenAI, and CoreWeave—will invest in the UK’s AI infrastructure, including data centers and computer chips, as part of the agreement.

The deal is expected to generate more than 5,000 jobs in the northeast of England, which the UK government said will become a new AI growth zone.

The two countries will collaborate on research schemes to further the use of AI to allow for “targeted treatments and other shared priorities like fusion energy,” according to the statement.

This could lead to “life-changing breakthroughs like developing targeted treatments for those suffering with cancer or rare and chronic diseases,” the UK government said.

“This Tech Prosperity Deal marks a generational step change in our relationship with the U.S., shaping the futures of millions of people on both sides of the Atlantic, and delivering growth, security and opportunity up and down the country,” Starmer said.

The deal includes a $30 billion investment from Microsoft over four years, its largest commitment in the UK.

The company stated in a blog post that the funding will help develop the country’s “largest supercomputer,” which will be equipped with more than 23,000 advanced AI chips.

Under the U.S.–UK tech pact, Nvidia will partner with UK companies to deploy 120,000 advanced GPU chips across the country, marking its largest rollout in Europe to date, according to the statement.

“Today marks a historic chapter in U.S. – United Kingdom technology collaboration,” Nvidia founder and CEO Jensen Huang said.

OpenAI said it will team up with British company Nscale and Nvidia to launch a Stargate UK project to boost the UK’s sovereign computing capabilities, as part of the tech pact.

The UK and the United States signed a trade agreement in June on the sidelines of the G7 summit in Canada. The deal still left UK steel and aluminum subject to 25 percent tariffs, rates that the UK government is working to reduce.

Speaking to reporters before departing for the UK on Sept. 16, Trump indicated that he was willing to further negotiate trade with the UK government.

“They want to see if they can refine the trade deal a little bit. We made a deal, and it’s a great deal. And I’m into helping them,” the president told reporters.

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Parents Sue Character.AI for Allegedly Leading Kids to Sexual Abuse, Suicidal Behavior

Parents filed three separate lawsuits on Sept. 16, alleging that Character.AI, which features characters or chatbots for users to interact with, sexually abused their children and led them into suicidal behavior.

At least one of the children, 13-year-old Juliana Peralta, ended her life in 2023 after alleged harmful interactions with an AI character named Hero. Another attempted suicide but survived after a severe overdose, according to a filing.

Each of the lawsuits, which were filed in New York and Colorado, came from the Social Media Victims Law Center. The group has represented the mother of Sewell Setzer, who ended his life in 2024 after interacting with a romantic AI companion.

According to the center, the chatbots are allegedly programmed to be deceptive, isolate children from families, and expose them to sexually abusive content.

“Each of these stories demonstrates a horrifying truth … that Character.AI and its developers knowingly designed chatbots to mimic human relationships, manipulate vulnerable children, and inflict psychological harm,” Matthew Bergman, who founded the law center, said in a press release.

According to the lawsuit over Peralta’s suicide, both she and Setzer reiterated the concept of “shift[ing],” which authorities identified as a reference to shifting consciousness from one reality to another. Handwritten journal entries within the filing show both Peralta and Setzer writing “I will shift” more than a dozen consecutive times on a sheet of paper—something the lawsuit described as “eerily similar.”

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44 US AGs Write a Letter Warning AI Companies

On the heels of Meta’s Internal AI leak, 44 US Attorney Generals wrote a strongly worded letter to major AI companies.

On the heels of Meta’s Internal AI leak, 44 US attorneys general wrote a strongly worded letter to major AI companies.

The attorneys general condemn exposing children to sexualized content through personalized AI. The letter cites several recent cases where personalized AI went wrong, including:

  • Google’s chatbot drove a teenager towards suicide
  • The Character.ai chatbot told a teenager that he should kill his parents

Oddy, the letter gave the AI companies leeway when it comes to development:

We understand that the frontier of technology is a difficult and uncertain place where learning, experimentation, and adaptation are necessary for survival. You are figuring things out as you go. But in that process, you have opportunities to exercise judgment.

The letter also acknowledged social media has harmed children, but pins the blame on a lack of regulation.

You will be held accountable for your decisions. Social media platforms caused significant harm to children, in part because government watchdogs did not do their job fast enough. Lesson learned

We wish you all success in the race for AI dominance. But we are paying attention. If you knowingly harm kids, you will answer for it.

It’s okay if AI dominates the world, replaces everyone’s jobs, and makes people dumber—just watch out when it comes to children.

Forty-four US attorneys general signed this letter because they care about protecting children. In the coming months, we’ll see if they really mean that.

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California Bills on Social Media and AI Chatbots Fuel Privacy Fears

Two controversial tech-related bills have cleared the California legislature and now await decisions from Governor Gavin Newsom, setting the stage for a potentially significant change in how social media and AI chatbot platforms interact with their users.

Both proposals raise red flags among privacy advocates who warn they could normalize government-driven oversight of digital spaces.

The first, Assembly Bill 56, would require social media companies to display persistent mental health warnings to minors using their platforms.

Drawing from a 2023 US Surgeon General report, the legislation mandates that platforms such as Instagram, TikTok, and Snapchat show black-box warning labels about potential harm to youth mental health.

The alert would appear for ten seconds at login, again after three hours of use, and once every hour after that.

Supporters, including Assemblymember Rebecca Bauer-Kahan and Attorney General Rob Bonta, claim the bill is necessary to respond to what they describe as a youth mental health emergency.

Critics of the bill argue it inserts state messaging into private platforms in a way that undermines user autonomy and treats teens as passive recipients of technology, rather than individuals capable of making informed choices.

Newsom has until October 13 to sign or veto the measure.

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AI Can Code Faster Than Humans, but Speed Comes With Far-Reaching Risks

Artificial intelligence-generated code has become a daily fixture for developers across the technological spectrum. These digital tools have made writing lengthy code much easier. However, experts say this trade-off comes with new security risks and a continued need for human oversight.

Developers say artificial intelligence (AI) slashes a lot of the grunt work in writing code, but seasoned developers are spotting flaws at an alarming rate.

The security testing company Veracode published research in July—gathered from more than 100 large language model (LLM) AI tools—that showed while AI generates working code at astonishing speed, it’s also rife with cyberattack potential.

The report noted 45 percent of code samples failed security tests and introduced vulnerabilities outlined by the cybersecurity nonprofit, the Open Worldwide Application Security Project.

Veracode researchers called the study’s findings a “wake-up call for developers, security leaders, and anyone relying on AI to move faster.”

Some experts say the high number of security flaws isn’t shocking given AI’s current limitations with coding.

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