A bill for an act establishing requirements and guidelines for conversational AI services, and providing civil penalties, and including applicability provisions.

HF 2507 requires operators of public conversational AI services (like chatbots) to clearly disclose when users interact with AI, especially to minors under 18. It mandates persistent disclaimers, bans reward systems to boost minor engagement, and prohibits generating sexual content, simulating human interaction, or sexually objectifying minors. Operators must also provide privacy tools for minors and parents (for under-13s or high-risk cases) and implement suicide crisis protocols. Violations carry civil penalties up to $500,000 per operator, with enforcement by Iowa’s attorney general starting July 1, 2027. The law excludes research tools, business internal systems, and narrow-topic AI from its scope.