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New State Laws Regulating AI Use for Mental Healthcare

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AI users, particularly teens and young adults, have become increasingly reliant on AI chatbots for mental health advice. A study from June 2026 found that one in five young people ages 12 to 21 reported relying on AI tools, such as ChatGPT, Gemini, Character.AI and Meta AI, for mental health advice or support when feeling sad, angry, nervous, or stressed.

Experts have raised a number of concerns about AI users, especially teens and young adults, relying on AI chatbots for mental health advice. Unlike a trained therapist, AI chatbots tend to consistently affirm and validate the user—even if a person says things that are harmful or misguided. A recent paper published in the Journal of Medical Internal Research (JMIR) Mental Health noted that relying on chatbots for mental health support has been associated with severe negative outcomes, including addiction-like attachment, exacerbation of mental health symptoms, and harmful advice, some of which have even resulted in self-harm or suicidal acts. Several lawsuits have been filed against AI chatbot providers, alleging that teens engaged in highly emotional interactions with an AI chatbot, which encouraged the teenager's attachment and eventual suicide.

In light of these concerns, this summer saw a wave of states passing new laws prohibiting the use of AI chatbots to provide mental health or psychotherapy services, without the involvement of a licensed professional. Additionally, states have also begun imposing restrictions on the ways in which licensed healthcare professionals, such as psychologists, counselors, social workers, and marriage and family therapists, can use AI in their practice.

Colorado. Colorado passed a new law, House Bill 26-1195, that restricts licensed psychotherapy providers from using AI to generate therapeutic recommendations or treatment plans without the review and approval by the regulated professional. The new law also prohibits psychotherapy professionals from interacting with clients in any form of therapeutic communication without simultaneous, real-time interaction between the professional, the AI system, and the client. Additionally, before using any AI tool to record or transcribe a therapeutic session, the professional must provide advance written notice to the client, explain the purpose of creating the recording, and obtain clear, written, revocable consent.

Illinois. Illinois passed the Wellness and Oversight for Psychological Resources Act, House Bill 1806, which prohibits companies and individuals from offering therapy or psychotherapy services, including through the use of AI chatbots, to the public unless the services are conducted by a licensed professional. The law also restricts healthcare professionals from using AI to (1) make independent therapeutic decisions; (2) directly interact with clients in any form of therapeutic communication; (3) generate therapeutic recommendations or treatment plans without review and approval by the licensed professional; or (4) detect emotions or mental states. Licensed professionals may only use AI tools "to assist in providing administrative support or supplementary support" provided that the professional "maintains full responsibility" for the use of the AI system, and may only use AI transcription tools if the client is informed in writing and consents to that use.

Nevada. Nevada's new law, Assembly Bill 406, prohibits AI providers from offering AI platforms designed to act as therapists, provide mental healthcare, or deceptively claim that an AI system can deliver such mental health services. The law also prohibits licensed professionals from using AI for direct patient care or therapy delivery, but they may use AI for non-clinical tasks such as scheduling, billing, and note-taking, provided they independently review and verify any AI-generated administrative content.

Maine. Under Maine's LD 2082 (Public Law Chapter 687), offering psychotherapy services, including delivering therapy, making clinical decisions, generating treatment plans, and directly interacting with clients, through the use of AI chatbots, is prohibited. Psychotherapy services may only be offered by a licensed professional. And licensed professionals may use AI as a supplementary tool provided that the professional maintains full responsibility for all treatment decisions, the client consents, and any therapeutic sessions utilizing supplementary AI are recorded or transcribed. Licensed professionals may also use AI for tasks like billing, scheduling, and record-keeping.

Rhode Island. Relatedly, Rhode Island passed a robust set of three AI-related mental health care laws. The new laws require AI companion and chatbot tool operators to incorporate self-harm and suicide ideation disclosure protocols, immediately route certain users to crisis services, and display clear notifications upon initiation of use, and at three-hour increments, reminding the user that they are not communicating with a human. Another new law prohibits unlicensed individuals and businesses from offering or advertising therapy or psychotherapy services via AI, which would effectively ban independent AI therapy chatbots. The third law requires mental healthcare professionals to inform patients if AI is used to record or transcribe sessions.

Tennessee. Tennessee passed Senate Bill 1580, which prohibits AI developers and deployers from advertising or representing that an AI platform is or can act as a qualified mental health professional, or a substitute for one.

Vermont. Vermont's new law, H. 816 (Act 156), prohibits mental health professionals from using AI to replace their own human judgment – they cannot rely solely on AI to make independent therapeutic decisions, establish diagnoses, or determine treatment plans, or to conduct therapeutic communications. Similarly, companies cannot offer mental health services to the public unless those services are overseen by a qualified, licensed mental health professional. As with other states, professionals may still use AI for administrative tasks such as scheduling, billing, and note-taking, as long as those uses support, rather than replace, human expertise in clinical care.

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