California has become the first state to regulate companion-based AI, targeting chatbots marketed for emotional support or mental health. While the focus is on protecting children and vulnerable users, it's also a sign of what's to come. Much like the evolution of email and browser privacy laws, businesses may soon face a patchwork of AI compliance standards across states and countries.

Grace and Peter discuss what this means for businesses using AI tools, ChatGPT's recent marketing flop, and how conversational AI can actually help uncover emerging technologies that don't surface in traditional search. From regulation to discovery, this episode explores the changing ways AI is shaping both business and creativity.

Chapters:

00:14 – California's new Companion AI law

02:36 – Implications for business and compliance

04:10 – ChatGPT's failed ad campaign

06:44 – Balancing AI use with human creativity

08:10 – AEO vs. SEO

09:50 – Discovering Twins.ai through ChatGPT

12:01 – Using AI for smarter research & tool discovery

Sources:

"California becomes first state to regulate AI companion chatbots" by Rebecca Bellan for TechCrunch

"OpenAI Just Flunked Marketing 101" by Mark Ritson for Adweek