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Illinois Enforces First State Ban on Standalone AI Therapy

The Wellness and Oversight Act restricts AI to administrative duties—appointment scheduling, billing procedures, therapy note entry—with penalties reaching $10,000 per violation.

Overview

  • Under the new law, AI is barred from making independent therapeutic decisions, interacting directly with patients, or generating treatment plans without a licensed mental health professional’s review.
  • AI applications may be used only for nonclinical support duties, including appointment scheduling, billing tasks, and session note-taking under human supervision.
  • The legislation closes a loophole that previously allowed unlicensed individuals to advertise themselves as therapists.
  • Enforcement by the Illinois Department of Financial and Professional Regulation includes fines up to $10,000 per offense.
  • The bill passed both chambers of the Illinois General Assembly unanimously, signaling bipartisan agreement on AI safeguards in mental health care.