Government Accountability

State Regulators Scramble as AI Therapy Apps Outpace Laws, Putting Americans at Risk

By Economics Desk | September 29, 2025

With AI therapy apps evolving faster than state laws can control, millions of Americans face unregulated mental health risks amid a fractured regulatory landscape.

In an era where artificial intelligence is becoming the go-to for mental health support, America's regulatory framework is dangerously outmatched. State legislatures have rushed to pass patchwork laws this year, aiming to rein in AI "therapy" apps. Yet these fragmented rules fall far short of safeguarding the American public or holding tech developers accountable for harmful outcomes.Why Are States Playing Catch-Up While Vulnerable Americans Face Unregulated Risks?States like Illinois and Nevada have outright banned AI therapy tools—threatening fines up to $15,000—to preserve the sanctity of licensed human therapists. Utah demands data privacy and transparency disclosures. Meanwhile, Pennsylvania, New Jersey, and...

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