Illinois has banned AI therapy, making it the first state to regulate the use of AI in mental health services

Illinois has become the first state to ban AI from providing mental health therapy, prohibiting its use for diagnoses, counseling, or treatment decisions while allowing it for administrative tasks. Violators face fines of up to $10,000.

The move follows lawsuits alleging harmful interactions between AI therapy chatbots and minors, as well as warnings from health experts and professional associations. Utah has already required AI chatbots to disclose their non-human status, and the APA has urged federal safeguards.

While concerns grow over psychological risks—especially for adolescents—studies show AI therapy can significantly reduce symptoms of depression, anxiety, and eating disorders, with some apps like Wysa and Youper earning clinical validation. Demand for mental health care continues to outpace the supply of human therapists, fueling debate over AI’s role in treatment.