Since the COVID-19 Pandemic, behavioral health providers are facing unprecedented demand. To combat burnout and reduce administrative burdens, many practitioners are turning to artificial intelligence. These tools promise to streamline taking notes, draft general communications, and handle complex scheduling. But as this technology enters the therapy room, state legislatures are drawing strict boundaries to ensure a human always remains in control of patient care.
Illinois recently took a pioneering step by enacting the Wellness and Oversight for Psychological Resources Act. This law establishes a comprehensive framework for how practitioners can and cannot use AI in psychotherapy. Under the new statute, AI is strictly prohibited from making independent therapeutic decisions or generating treatment plans without a licensed professional carefully reviewing the output. Practitioners can still use AI for basic administrative support like billing and scheduling; however, using it for clinical support requires providers to follow certain strict compliance protocols. For example, if a provider wants to use AI to transcribe or analyze a therapy session, they must obtain written, specific, and revocable consent from the patient. Ultimately, the law holds providers strictly liable for all AI outputs, with violations carrying civil penalties of up to $10,000 per incident.
Nevada has taken a similarly firm stance with the passage of Assembly Bill 406. This legislation explicitly bans artificial intelligence from acting as a behavioral health provider. As such, tech companies and practitioners are forbidden from offering AI systems to deliver professional mental healthcare, and they cannot advertise that an AI system can provide therapy. While providers may still use AI for administrative tasks and drafting session notes, Nevada law mandates that practitioners independently review all AI outputs for accuracy before relying on them. The stakes are high for compliance, as violators face up to $15,000 in penalties per incident and risk facing professional disciplinary action for unprofessional conduct.
These laws in Illinois and Nevada are not isolated events, as regulatory scrutiny of AI in mental health is rapidly expanding across the country. In Pennsylvania, lawmakers recently introduced legislation specifically designed to regulate the use of artificial intelligence in mental health therapy. Maryland legislators have also considered proposals that would prohibit AI in direct behavioral healthcare while permitting specific administrative uses. Meanwhile, states like New York and New Jersey, are advancing broader healthcare regulations for AI. These emerging rules generally focus on mandatory patient disclosures when AI generates clinical communications and restrictions on how AI is used in payer utilization reviews.
Integrating artificial intelligence into a behavioral health practice can drastically improve efficiency, but doing so safely requires careful legal navigation. Relying on these tools without proper vetting, explicit patient consent, and mandatory human review can jeopardize a professional license and expose a practice to significant liability.
At MDRXLaw, we are actively monitoring the movement of AI-related bills across the states in which we serve. If you are using or considering AI tools for your mental or behavioral health practice in New York, New Jersey, Pennsylvania, Maryland*, or Michigan, please feel free to contact us at 212-668-0200 or email us at info@mdrxlaw.com to ensure your business model aligns with the law. *Admission Pending
