Report from the StateScoop
In Brief – Illinois has banned artificial intelligence services from providing mental health services directly to patients. The Wellness and Oversight for Psychological Resources Act prohibits AI systems from directly delivering therapeutic treatment or making clinical decisions, but does allow AI-enabled digital tools to be used in mental health administrative roles and well as to support licensed mental health professionals in their work. The law, which carries fines of up to $10,000 per violation, will be enforced by the Illinois Department of Financial and Professional Regulation. Critics of the use of AI in direct patient care warned that AI systems lack empathy, accountability or clinical oversight necessary for safe mental health treatment. Illinois has already enacted regulatory regimes governing the use of AI in job interviews and employment decisions.
Context – AI regulation notched some landmark wins in 2024, especially with the EU’s huge AI Act. Colorado also became the first US state to enact broad AI regulation that year, while the UK government was focused on AI safety and pressure was building in Japan. But momentum shifted, with President Trump staking out a strong pro-industry position which is now reflected in his AI Action plan. California’s governor vetoed major AI regulation last December. The UK and Japan have been moving away from AI regulation. The pace of EU AI rules is now being criticized by European business leaders and even some government officials. This summer’s big Republican budget reconciliation legislation initially included a 10-year moratorium on restrictive state AI laws, but bipartisan coalitions of state AGs and state legislators objected. It proved to be a deregulatory bridge too far and was pulled from the bill when enough Hill Republicans joined united Democratic opposition. States continue to consider a range of AI-related bills, with laws targeting election “deepfakes” and misinformation being especially popular despite constitutional problems. Texas has enacted a major AI bill, Florida is debating one, and in New York, the governor is pondering whether to sign the bill passed by the state legislature.