Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
December 11, 2025
AI chatbots have gone from novelty to necessity almost overnight. Whether embedded on a website, inside an app, or used internally to help employees find answers faster, these tools are now touching customer data, making suggestions, and sometimes sounding lot like a human advisor.
Regulators have noticed.
The Federal Trade Commission (FTC) has been clear that existing consumer protection laws apply fully to AI tools and has launched enforcement sweeps focused on deceptive AI claims and unfair practices.1 In 2025, the FTC opened an inquiry into companies offering AI chatbots as “companions,” specifically asking how they test and monitor potential harms to users, especially children and teens.2
If your business is thinking about deploying an AI chatbot, here are the key legal issues and practical safeguards to consider before you go live.
Internal chatbots (for employees): these are typically used to search internal policies, summarize documents, or help with routine workflows. Key risks include:
Customer facing chatbots: these interact directly with customers or prospects, often without human review. Key risks include:
Both types need guardrails, but public facing bots typically require more robust disclaimers, monitoring, and escalation paths.
Deceptive or misleading outputs include:
Data privacy and state privacy laws:
Children and teens:
Confidentiality and intellectual property:
Security and abuse:
Disclaimers will not fix a fundamentally unsafe deployment, but they are a key part of a defensible risk posture.
Content to consider:
Placement and formatting:
Best practices include:
Before launching your chatbot, consider putting in place:
This blog was drafted by Jack Amaral, an attorney in the Minneapolis, Minnesota office of Spencer Fane. For more information, please visit www.spencerfane.com.
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1 https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-announces-crackdown-deceptive-ai-claims-schemes
2 https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-launches-inquiry-ai-chatbots-acting-companions
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