New York City

Albany Puts AI Chatbot Toys In A Five-Year Time-Out

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Published on June 02, 2026
Albany Puts AI Chatbot Toys In A Five-Year Time-OutSource: Unsplash/ Igor Omilaev

New York’s talking teddy bears may be headed for a long quiet spell. State senators on Monday voted to slap a five-year pause on the sale of AI-powered "chatbot" toys: stuffed animals, dolls and other voice-activated playthings that use large language models to talk with kids. The measure sailed through the Senate and now heads to the Assembly, with sponsor Sen. Andrew Gounardes of western Brooklyn pitching the timeout as a way to study how these gadgets affect young children before they become a staple in the toy box.

The Legislature’s proposal, S9408A, cleared the Senate in a 57–3 floor vote on June 1, according to the New York State Senate. The bill would prohibit the manufacture, distribution and sale of so-called chatbot toys for five years while a state study plays out. It also spells out what counts as an "AI companion" and designates which agencies are on the hook to do the homework and release a public report.

Gounardes argued that these toys have not been proven safe for very young children, warning they could crowd out physical play and real-world social time and even encourage addictive interactions. Brooklyn Eagle reports he even reached back to a 1963 episode of "The Twilight Zone" to drive home his point about creepy kid-tech gone wrong. Industry groups, for their part, have pushed back on blanket bans and say lawmakers should focus more on data privacy rules and strong parental controls instead, as City & State reported.

How the bill would work

Under the proposal, a "chatbot toy" is any children’s toy that embeds an AI companion. The bill assigns a multiagency team — including the Department of State, the Office of Mental Health, the attorney general and the state’s Office of Information Technology Services — to study the risks and benefits before the pause can be lifted. It gives the attorney general power to seek injunctions and civil penalties of up to $15,000 per day for violations and requires public reporting on the interagency review.

According to the bill text, the five-year clock would start running within months of the governor’s signature, with the moratorium automatically expiring after that period. At that point, lawmakers would decide whether to renew or scrap the restriction altogether. The New York State Senate posting of the bill lays out the enforcement details and study requirements.

Where this fits nationally

New York’s move comes as AI companions face growing scrutiny around the country. Last September, the Federal Trade Commission opened a broad inquiry into seven companies that operate consumer-facing chatbots, looking at how they handle safety for younger users, according to the FTC. State lawmakers elsewhere are also weighing in: the toy industry’s trade group says California and several other states are considering bills focused on companion chatbots while multiple proposals move through various legislatures. The Toy Association has been tracking that flurry of activity.

What’s next in Albany

With the Senate’s vote in the books, the measure has been sent to the Assembly, where it will face committee review and a potential floor vote. Legislative trackers are already logging each procedural step. If the Assembly passes the bill in some form, it will land on Gov. Kathy Hochul’s desk to sign or veto. A spokesperson has said the governor would review any bill that clears both chambers.

Between now and then, expect amendments and backroom haggling as lawmakers try to thread the needle between child-safety concerns, industry warnings and broader privacy rules. TrackBill is listing the bill’s actions, while City & State recorded the governor’s office comment on how the measure would be handled if it reaches her desk.