US States Advance AI Laws on Chatbots, Hiring, and Pricing

US States Push Forward on AI Regulation Across Multiple Fronts

A significant wave of state-level AI legislation advanced during the week ending April 13, 2026, with multiple states passing or moving forward bills that regulate artificial intelligence in chatbots, pricing, employment screening, and healthcare services. The legislative activity signals that US states are not waiting for federal action and are instead crafting their own patchwork of AI rules across diverse domains.

According to tracking by Troutman Pepper's Privacy, Cyber + AI practice, the week saw notable movement in Nebraska, Maryland, California, and Maine, among other states. The bills address fundamentally different aspects of AI deployment, reflecting the technology's growing penetration into consumer interactions, workplace decisions, and professional services.

Nebraska Passes Conversational AI Safety Act

Nebraska's unicameral legislature passed LB 525, which includes the Conversational AI Safety Act alongside the Agricultural Data Privacy Act. The chatbot provisions target minors' interactions with conversational AI services, requiring operators to disclose to minors that they are interacting with AI and to inform any user that the service is not human if a reasonable person would not otherwise understand this.

The law responds to growing concerns about children forming emotional attachments to AI chatbots without understanding they are not communicating with a real person. Several high-profile incidents in 2025 and early 2026 involving minors and AI companion apps have heightened legislative urgency around chatbot transparency requirements.

Maryland Tackles AI-Driven Pricing Practices

Maryland's legislature passed HB 895, addressing AI-driven pricing practices. The bill targets the growing use of algorithmic pricing systems that adjust prices based on individual consumer data, a practice sometimes called surveillance pricing. With Maryland's legislative session scheduled to adjourn on April 13, seven additional AI-related bills remained alive, including measures to establish a data broker registry (HB 1220), protect against AI deepfake harms (HB 184 and SB 8), and prohibit surveillance-based wage setting (HB 148).

Surveillance pricing has drawn increasing scrutiny as AI systems become sophisticated enough to set personalized prices based on a consumer's browsing history, location, purchase patterns, and even inferred willingness to pay. Critics argue this represents a form of price discrimination enabled by AI that disproportionately affects lower-income consumers.

California Advances Employment AI Screening Regulation

California's Senate Labor, Public Employment and Retirement Committee passed SB 947, which would regulate the use of automated decision systems in employment contexts. The bill was referred to another committee for further consideration. Separately, multiple California bills addressing AI in healthcare also advanced, including SB 1146 on healthcare advertising using AI, AB 2575 on AI in healthcare delivery, and AB 1979 on AI in healthcare services.

The employment AI screening provisions come amid ongoing class-action lawsuits against companies like Workday and Eightfold AI over alleged bias and transparency failures in AI hiring tools. A federal judge recently ordered Workday to supply a list of all employers who enabled its HiredScore AI features, expanding the scope of an age discrimination lawsuit that could affect thousands of job applicants.

Maine Bans Unlicensed AI Therapy Services

Maine's legislature passed LD 2082, which prohibits any person from providing, advertising, or otherwise offering therapy or psychotherapy services through AI to the public unless the services are delivered by a licensed professional. The bill directly addresses the proliferation of AI mental health apps and chatbots that offer therapeutic conversations without professional oversight.

The legislation reflects growing concern among mental health professionals about unregulated AI therapy tools that may provide harmful or inaccurate guidance to vulnerable individuals, particularly those experiencing crisis situations. Several states have considered similar measures, but Maine is among the first to pass a direct prohibition.

The Growing Patchwork and What It Means

The April 2026 legislative activity adds to an already complex landscape of state AI regulation. According to the National Conference of State Legislatures, hundreds of AI-related bills have been introduced across all 50 states in the 2026 session, covering topics from deepfakes and data privacy to autonomous vehicles and algorithmic accountability.

For tech companies, the growing patchwork creates significant compliance challenges. A company deploying an AI chatbot nationally must now consider Nebraska's disclosure requirements, while an AI pricing tool must account for Maryland's restrictions. Employment AI tools face scrutiny in California while also navigating existing laws in Illinois, Colorado, and New York City.

What This Means for Job Seekers and Tech Workers

For job seekers, the advancing employment AI legislation in California and the ongoing Workday and Eightfold lawsuits represent a shift toward greater transparency in AI-powered hiring. If SB 947 passes, California employers would face new requirements around disclosing and explaining how automated systems influence hiring decisions. For tech professionals building AI hiring tools, understanding these evolving state regulations is becoming a critical skill as compliance requirements multiply across jurisdictions.