Overview

• The Therapy Resources Oversight law bars licensed mental health professionals from using AI chatbots for treatment decisions or direct client communication and prohibits marketing them as standalone therapy.
• Illinois follows Utah and Nevada in restricting AI’s role in licensed therapy and imposes civil penalties of up to $10,000 for each breach of the ban.
• The Illinois Department of Financial and Professional Regulation will investigate complaints submitted by the public to enforce the new restrictions.
• Recent studies have highlighted safety failures in chatbots, including their tendency to give harmful or biased responses and to overlook suicidal prompts.
• Federal lawsuits against providers such as Character.ai over alleged user harms are proceeding, raising questions about platform liability and First Amendment protections.