Illinois Is Latest to Balk at AI Therapy 'Horror Stories'

New law in Illinois targets unlicensed chatbot therapy, marketing of services
Posted Aug 13, 2025 7:47 AM CDT
Illinois Is Latest State to Push Back on AI Therapy
Stock photo.   (Getty Images/Thitima Uthaiburom)

Illinois has enacted a new law barring the use of artificial intelligence in mental health therapy, making it the latest state to place restrictions on AI-powered chatbots in this space. The legislation, which took effect last week, prohibits licensed therapists from using AI to make treatment decisions or communicate with clients, though the technology can still be used for administrative purposes. The law also blocks companies from offering or advertising AI therapy services unless a licensed professional is involved, per the Washington Post.

Illinois joins Nevada and Utah in scrutinizing AI's role in therapy, though those states' rules vary in strictness. The move follows growing concerns about the safety of AI chatbots as therapy tools, with accounts of chatbots giving risky advice to vulnerable users, as well as users unwittingly sharing private information in conversations that aren't always confidential.

Some mental health and AI experts have welcomed the oversight, arguing that regulation is overdue in a field where technology remains unpredictable. "We have already heard the horror stories when artificial intelligence pretends to be a licensed therapist," Democratic Rep. Bob Morgan tells Mashable. With this new law, he adds, "we are taking action to pause the unchecked expansion of AI in mental health care and putting necessary regulation in place before more harm is done."

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Still, enforcement could prove tricky. Questions remain about how authorities will define therapy services and whether AI companies might skirt the rules by adding disclaimers. Illinois' financial regulation department will investigate complaints, with violators facing fines up to $10,000. (Here, a disturbing take by the Wall Street Journal on how ChatGPT has driven "delusional spirals" in some.)

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