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Artificial intelligence (AI) can greatly enhance healthcare delivery, but in Illinois, new regulations now strictly govern its use in therapy and psychotherapy. Licensed providers must understand these rules to integrate AI safely, ethically, and legally. This post explains who the new law applies to and outlines what providers need to know to use AI responsibly in their practice.
As of August 4, 2025, the Wellness and Oversight for Psychological Resources Act is officially in effect in Illinois. This law places new restrictions on how artificial intelligence (AI) may be used by Illinois-licensed professionals who provide therapy and psychotherapy services.
Illinois was the first state to regulate AI use in mental health care, and other states are beginning to follow its lead. Mental health providers offering services in Illinois—whether in person or via telehealth—should be aware of the Act’s scope, limitations, and compliance requirements
Who the Act Applies To
The Act applies to Illinois-licensed professionals providing therapy or psychotherapy services, regardless of whether services are delivered in person or remotely. Notably, the Act does not apply to physicians.
When AI Use is Permitted
Licensed professionals may use AI only in limited, non-therapeutic ways to provide “administrative support” and “supplementary support.” When using AI in these matters, providers retain full responsibility for any interactions with AI, how it is used, and any output it generates.
- Administrative support refers to tasks that assist the delivery of therapy or psychotherapy but do not involve communication, such as appointment scheduling, billing, or drafting general communications.
- Supplementary support means tasks that assist in the delivery of therapy or psychotherapy services but do not involve therapeutic communication and are not administrative support tasks. Examples include:
- Preparing and maintaining client records, including therapy notes.
- Analyzing anonymized data to track client progress or identify trends (subject to review by a licensed professional).
- Identifying and organizing external resources or referrals for client use.
Prohibited Uses of AI
The Act draws a firm line around clinical judgment and patient interaction.
AI may not be used to:
- Make independent therapeutic decisions.
- Directly interact with clients in any form of therapeutic communication.
- Generate therapeutic recommendations or treatment plans without review and approval by the licensed professional.
- Detect emotions or mental states.
Additionally, AI may not be used in recorded or transcribed sessions unless (1) the patient is informed in writing that AI will be used and the purpose of its use, and (2) the patient provides consent.
Additional Restrictions Under the Act
Corporations, entities, or individuals may not provide, advertise, or offer therapy or psychotherapy services (including via AI) unless conducted by a licensed professional. All client records must remain confidential, except as permitted by the Illinois Mental Health and Developmental Disabilities Confidentiality Act.
Penalties and Federal Preemption
Violations of the Act can result in civil penalties of up to $10,000 per violation, enforced by the Illinois Department of Financial and Professional Regulation.
While federal lawmakers are actively considering nationwide AI regulations, any future federal law could potentially preempt Illinois’s requirements. Until then, providers must comply fully with the Illinois Act.
Here Are The Top Ten Takeaways For Providers
- Documentation is Critical
All AI use should be clearly documented and categorized as administrative, supplementary, or therapeutic. Providers should keep records of:
- What tasks AI assisted with.
- When AI was used.
- Whether patient consent was obtained.
This documentation is essential in the event of audits or legal scrutiny.
- AI Outputs Must Always Be Reviewed
Because licensed professionals are fully responsible for AI-generated outputs, even for permitted tasks, they should always review and verify AI outputs before relying on them.
- Consent is Required for Recorded Sessions
If AI is used during recorded or transcribed sessions, patients must receive a written authorization explaining the AI’s use and must consent before any AI is utilized.
- Avoid Reliance on AI for Clinical Judgment
AI cannot replace professional judgment or clinical expertise. Any recommendation, treatment plan, or interpretation of patient data must be approved by the licensed professional.
- Training and Staff Awareness Matter
Practices should ensure that all staff involved in patient care understand the Act’s requirements, including documentation, consent, and permissible AI use.
- Transparency Builds Trust
Always be transparent about AI use and its limitations to maintain trust. Explain how AI is assisting, what it is not doing, and how patients’ data is handled.
- Telehealth Still Counts
If providing services via telehealth to patients physically located in Illinois, the Act applies, even if your practice is based out-of-state.
- When in Doubt, Don’t Use AI
If there is any uncertainty about whether an AI use is therapeutic or requires consent, the safest course is to avoid using AI altogether.
- Watch for Federal Developments
Providers should continue monitoring federal AI legislation, as future laws may alter or preempt Illinois’s regulatory framework.
- Integrate AI Policies Into Your Compliance Manual
Document your AI policies in your practice’s standard operating procedures to standardize use and reduce risk.
Get Legal Support
If you are a healthcare provider using or considering AI for therapy or psychotherapy services, consulting with an attorney ensures that your AI-assisted decisions comply with state and federal regulations and protects your patients and your practice. If you’re located in one of the states where we have licensed attorneys, you can schedule a free consultation with one of our experienced healthcare lawyers.
This blog is made for educational purposes and is not intended to be specific legal advice to any particular person. It does not create an attorney-client relationship between our firm and the reader. It should not be used as a substitute for competent legal advice from a licensed attorney in your jurisdiction.
