Georgia SB 540 — AI Companion Chatbot Law (Enacted — O.C.G.A. § 39-5-6, effective July 1, 2027) [duplicate of georgia_ai_chatbot — RQ-51]: AI Compliance Requirements
Georgia SB 540 was signed into law by Governor Kemp on May 11, 2026 and takes effect July 1, 2027 (codified at O.C.G.A. § 39-5-6; primary-source verified against the governor-signed enrolled Act 2026-06-13). It regulates "AI companion chatbots" — generative-AI systems designed to simulate a sustained human-like relationship — NOT all commercial chatbots: customer-service bots, internal-business GenAI, dev/research/enterprise tools, voice assistants, narrow educational tools, and game/film/TV characters are excluded. In-scope operators must disclose the AI companion chatbot is not a natural person (session start + at least every 3 hours, every hour for minors), apply minor-safety + anti-manipulation measures, maintain a 988-referring severe-harm/crisis protocol with public + annual-aggregate disclosure, avoid false "licensed professional" claims, offer minor/parental tools, and use age assurance before sexually-explicit features (identity/age-verification documents may not be retained longer than reasonably necessary and in no event longer than 24 hours unless a longer period is permitted by law, and age-assurance data may not be sold — § 39-5-6(i)-(j)). Enforced by the Georgia AG: civil penalty up to $10,000 per knowing violation plus compensatory damages, costs/fees, and injunction; each day is a separate violation per user affected; discretionary 30-day cure for first-time non-knowing violations. (Scope/duties/penalty corrected 2026-06-13 against the enacted text; RQ-51 primary-source flag resolved. Cycle 21 (2026-08-22) added the § 39-5-6(j) 24-hour data-retention cap, previously present in the sibling `georgia_ai_chatbot` entry but missing here — a gap Cycle 20 identified but left unfixed given its own time budget. NOTE: this entry duplicates georgia_ai_chatbot for the same statute and remains flagged for founder consolidation — RQ-51.)
Summary of publicly-available regulatory text as of 2026-08-22. Verify against current official sources before relying on this for compliance decisions. Not legal advice.
Key Facts
July 1, 2027
Georgia AG enforcement under O.C.G.A. § 39-5-6(k): civil penalty up to $10,000 per knowing violation, plus compensatory damages, costs and reasonable attorney's fees, and an order to enjoin the violation; each day in violation is a separate violation for each user affected; discretionary 30-day cure for a first-time non-knowing violation not involving sexual exploitation of a minor or self-harm. (Primary-source confirmed against the governor-signed enrolled Act 2026-06-13 — RQ-51.)
What Your Business Must Do
1 compliance requirement identified. Critical requirements carry the highest risk of enforcement action.
AI Companion Chatbot Disclosure for Georgia Users (effective July 1, 2027)
High PriorityIf you operate an AI companion chatbot (a generative-AI system designed to simulate a sustained human-like relationship) accessible to Georgia users, clearly and conspicuously disclose that the user is interacting with an AI companion chatbot, not a natural person, at the start of each session and at least every 3 hours during continued interaction (every hour for known/marketed-to minors). Customer-service bots that do not sustain a relationship or elicit emotional attachment are excluded. SB 540 (O.C.G.A. § 39-5-6) was signed May 11, 2026; comply by July 1, 2027.
Deadline: July 1, 2027
O.C.G.A. § 39-5-6Who Does This Apply To?
Applies to operators of AI companion chatbots accessible to Georgia users, under SB 540 — the Georgia AI companion chatbot law signed by Governor Kemp on May 11, 2026, effective July 1, 2027, codified at O.C.G.A. § 39-5-6. SCOPE IS NARROW: an "AI companion chatbot" is a generative-AI system designed to simulate a sustained human-like (intimate, romantic, or platonic) relationship; customer-service chatbots that do not sustain a relationship or elicit emotional attachment, internal-business GenAI, dev/research/enterprise-productivity tools, voice assistants, narrow educational tools, and game/film/TV characters are expressly excluded. In scope means: AI-identity disclosure at session start and at least every 3 hours (every hour for minors); minor-safety + anti-manipulation measures; a 988-referring severe-harm/crisis protocol with public + annual-aggregate disclosure; no false "licensed professional" claims; minor/parental tools; and age assurance before sexually-explicit features (age/identity-verification documents retained no longer than 24 hours unless a longer period is legally permitted; no sale of age-assurance data). The Georgia Attorney General enforces — civil penalty up to $10,000 per knowing violation plus compensatory damages, costs/fees, and injunction; each day is a separate violation per user affected; discretionary 30-day cure for first-time non-knowing violations. NOTE: this entry covers the same statute as georgia_ai_chatbot and is flagged for founder consolidation (RQ-51). Scope turns on operating an AI companion chatbot reachable by Georgia users, not company size.
Recent Regulatory Guidance
Georgia SB 540 — governor-signed enrolled Act, O.C.G.A. § 39-5-6 (signed 11 May 2026; effective 1 Jul 2027)
The enacted text regulates "AI companion chatbots" — generative-AI systems designed to simulate a sustained human-like relationship. Operators must disclose the user is interacting with an AI companion chatbot (session start + at least every 3 hours, every hour for minors), apply minor-safety + anti-manipulation measures, maintain a severe-harm/crisis protocol referring users to the 988 Suicide and Crisis Lifeline (with public + annual-aggregate disclosure), avoid false "licensed professional" claims, offer minor/parental tools, and use commercially reasonable age assurance before sexually-explicit features. The Georgia Attorney General enforces — civil penalty up to $10,000 per knowing violation plus compensatory damages, costs/fees, and injunction, with each day a separate violation per user affected and a discretionary 30-day cure for first-time non-knowing violations — and may promulgate implementing rules/guidance (none published yet).
Key Case Law & Precedent
FTC Operation AI Comply (Sept 2024)
US Federal Trade Commission · 2024FTC enforcement sweep against five companies making deceptive or unsupported AI claims, including DoNotPay's 'AI lawyer' marketing. Georgia AG aligns with Operation AI Comply: deceptive AI representations are actionable under both FTC Act §5 and the Georgia Fair Business Practices Act. Once SB 540 takes effect, Georgia's chatbot-disclosure floor will mirror the FTC's enforcement standard.
Outcome: Five FTC orders, including DoNotPay $193K and Rytr permanent ban
Case referenceFrequently Asked Questions
Does Georgia SB 540 — AI Companion Chatbot Law (Enacted — O.C.G.A. § 39-5-6, effective July 1, 2027) [duplicate of georgia_ai_chatbot — RQ-51] apply to my business?
Georgia SB 540 was signed into law by Governor Kemp on May 11, 2026 and takes effect July 1, 2027 (codified at O.C.G.A. § 39-5-6; primary-source verified against the governor-signed enrolled Act 2026-06-13). It regulates "AI companion chatbots" —… Use Aegis Firma's free scanner to get a personalized assessment in under 5 minutes.
What is the penalty for non-compliance?
The maximum penalty under Georgia SB 540 — AI Companion Chatbot Law (Enacted — O.C.G.A. § 39-5-6, effective July 1, 2027) [duplicate of georgia_ai_chatbot — RQ-51] is: Georgia AG enforcement under O.C.G.A. § 39-5-6(k): civil penalty up to $10,000 per knowing violation, plus compensatory damages, costs and reasonable attorney's fees, and an order to enjoin the violation; each day in violation is a separate violation for each user affected; discretionary 30-day cure for a first-time non-knowing violation not involving sexual exploitation of a minor or self-harm. (Primary-source confirmed against the governor-signed enrolled Act 2026-06-13 — RQ-51.). Fines are typically scaled by company size, severity of violation, and whether violations were willful or accidental.
How do I comply with Georgia SB 540 — AI Companion Chatbot Law (Enacted — O.C.G.A. § 39-5-6, effective July 1, 2027) [duplicate of georgia_ai_chatbot — RQ-51]?
The 1 requirements above cover the core obligations. The fastest path to compliance is: (1) conduct an AI risk assessment, (2) document your AI systems, (3) implement transparency disclosures where required. Aegis Firma generates all required documents automatically.
Official Source
https://gov.georgia.gov/document/2026-signed-legislation/sb-540/downloadLast updated: 2026-08-22 — verify at source before relying on this information.
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