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28 August 2025

New Illinois Law Restricts Use Of AI In Mental Health Therapy

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Illinois has become one of the first states to formally regulate the use of artificial intelligence (AI) in therapy and psychotherapy services.
United States Illinois Food, Drugs, Healthcare, Life Sciences

Illinois has become one of the first states to formally regulate the use of artificial intelligence (AI) in therapy and psychotherapy services. Enacted Aug. 1, 2025, the Wellness and Oversight for Psychological Resources Act (the Act) prohibits the use of AI to provide professional therapy services or perform therapeutic decision-making. The Illinois General Assembly passed the law almost unanimously, at least in partial response to recent news stories involving the use of AI-powered therapy "chatbots" that have provided inaccurate and, in some cases, harmful recommendations to clients. The Act takes effect immediately.

The Act prohibits individuals, corporations and other entities from providing, advertising, or offering therapy or psychotherapy services in Illinois, including through the use of internet-based AI, unless the services are performed by licensed professionals (e.g., psychologists, social workers, professional counselors, etc.). This prohibition extends to autonomous AI systems, including mental health chatbots, operating in Illinois if they provide recommendations relating to the diagnosis, treatment or improvement of an individual's mental or behavioral health condition.

The Act further restricts how licensed professionals may deploy AI in their clinical practice. In particular, the Act prohibits licensed professionals from allowing AI to do any of the following: 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 in clients.

Notably, the Act contains carve-outs allowing licensed professionals to utilize AI for "administrative support services" and "supplementary support services." The Act defines administrative support services as clerical tasks that do not involve therapeutic communication. Specific examples include managing appointment schedules, processing billing and insurance claims, and drafting "general communications related to therapy logistics that do not include therapeutic advice." Supplementary support services include those that aid licensed professionals in the delivery of therapy but do not involve therapeutic communication, such as preparing and maintaining notes and records, analyzing anonymized data and identifying external resources or referrals for client use. This would include the deployment of AI technologies such as ambient listening and medical scribes to create clinical documentation. Importantly, licensed professionals may use AI only for supplementary support if they have obtained the patient's written consent.

Violations of the Act may result in civil penalties of up to $10,000 per violation. The Act does not apply to religious counseling, peer support, and self-help materials or educational resources that are available to the public and do not purport to offer therapy or psychotherapy services.

Illinois professionals and practices should consider adopting and implementing written policies and procedures that specifically identify the day-to-day tasks for which AI may be used and require written patient consent. Failure to do so promptly may result in costly financial penalties and reputational harm. Likewise, AI platforms operating in Illinois and interfacing with the therapy industry should closely scrutinize their operations to ensure compliance with the new law.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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