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Regulatory regulatory action

US States Regulate AI Therapy Apps

Analysis based on 8 articles · First reported Sep 29, 2025 · Last updated Sep 29, 2025

Sentiment
0
Attention
4
Articles
8
Market Impact
General
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The fragmented state-level regulation of AI therapy apps creates uncertainty for technology companies like Earkick and Ash, potentially hindering innovation and market access. Federal inquiries by the United States — Federal Trade Commission and United States — Food and Drug Administration signal a broader regulatory push, which could lead to standardized guidelines but also increased compliance costs for AI developers.

Technology Healthcare Mental Health Services

Several US states, including United States — Illinois and United States — Nevada, have begun regulating AI therapy apps due to concerns about user safety and the lack of federal oversight. United States — Illinois and United States — Nevada have banned AI for mental health treatment, while United States — Utah has imposed specific limits. Other states like United States — Pennsylvania, United States — New Jersey, and United States — California are also considering regulations. This patchwork of state laws creates a challenging environment for AI app developers, who face varying restrictions and legal ambiguities. Companies like Earkick have had to adjust their terminology, and others like Ash have blocked access in certain states. Federal agencies, including the United States — Federal Trade Commission and the United States — Food and Drug Administration, are also initiating inquiries and reviews into AI chatbot companies and mental health devices, indicating a growing push for comprehensive federal regulation. Experts like Vaile Wright from the American Psychological Association emphasize the need for federal oversight to ensure the safety and effectiveness of AI in mental health, especially given the current shortage of mental health providers.

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Earkick, a mental health chatbot app, has faced challenges in categorizing its services due to evolving state regulations, leading to changes in its terminology.
Importance 80.0 Sentiment -20.0
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Karin Andrea Stephan, CEO and co-founder of Earkick, expressed concerns about states' ability to keep up with AI innovation and the muddy legal landscape.
Importance 70.0 Sentiment 0.0
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United States — Nevada has banned the use of AI to treat mental health, threatening fines up to $15,000 for non-compliance.
Importance 70.0 Sentiment 0.0
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Vaile Wright, who oversees healthcare innovation at the American Psychological Association, emphasizes the need for federal regulation and oversight of AI therapy apps.
Importance 60.0 Sentiment 0.0
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Ash, an AI therapy app, blocked access in United States — Illinois due to the state's ban, urging users to contact legislators.
Importance 60.0 Sentiment -20.0
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The American Psychological Association, through Vaile Wright, advocates for federal regulation and oversight of AI therapy apps to ensure safety and effectiveness.
Importance 60.0 Sentiment 0.0
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United States — Utah has placed limits on therapy chatbots, requiring them to protect user health information and disclose that they are not human.
Importance 60.0 Sentiment 0.0
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Mario Treto Jr., secretary of the United States — Illinois Department of Financial and Professional Regulation, stated the goal of ensuring only licensed therapists provide therapy.
Importance 50.0 Sentiment 0.0
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The United States — Illinois Department of Financial and Professional Regulation aims to ensure that only licensed therapists provide therapy, impacting AI therapy apps.
Importance 50.0 Sentiment 0.0
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Therabot, a generative AI chatbot developed by Dartmouth College, showed early promise in treating anxiety, depression, or eating disorders in a clinical trial.
Importance 50.0 Sentiment 20.0
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Nicholas Jacobson, a clinical psychologist leading the Therabot research, emphasized the need for greater caution and larger studies in the AI mental health field.
Importance 50.0 Sentiment 0.0
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Kyle Hillman, affiliated with the National Association of Social Workers, lobbied for AI therapy bills in United States — Illinois and United States — Nevada, arguing chatbots are not a solution to mental health provider shortages.
Importance 40.0 Sentiment 0.0
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The National Association of Social Workers, through Kyle Hillman, lobbied for AI therapy bills in United States — Illinois and United States — Nevada, advocating against chatbots as a solution for mental health provider shortages.
Importance 40.0 Sentiment 0.0
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Character.ai is under inquiry by the United States — Federal Trade Commission regarding the negative impacts of AI technology on children and teens.
Importance 30.0 Sentiment 0.0
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Snap Inc. is under inquiry by the United States — Federal Trade Commission regarding the negative impacts of AI technology on children and teens.
Importance 30.0 Sentiment 0.0
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