State AI Therapy Regulations – Analyzing the Illinois Wellness and Oversight for Psychological Resources Act

Authors

• Natalie Browne, Southern Methodist University, Dedman School of LawFollow

Abstract

According to the Harvard Business Review, the top use case for generative artificial intelligence (AI) in 2025 was therapy and companionship. Accordingly, numerous “therapy-specific” AI tools have hit the market in recent years, vying to fill this growing need. However, individuals are also turning to generic large language models (LLMs), such as ChatGPT, to express their deepest anxieties, seek reassurance, and gather advice. While tech optimists assert that AI therapy tools will extend mental health treatment in care deserts, attention-grabbing headlines about such use cases have shattered communities and shocked legislatures. To address growing concerns about AI therapy, Illinois enacted the Wellness and Oversight for Psychological Resources Act. This article analyzes the statutory language, highlighting how the new law overburdens clinically developed AI tools and licensed practitioners but grants general-purpose LLM developers an avenue to regulatory arbitrage.

Recommended Citation

Natalie Browne, State AI Therapy Regulations – Analyzing the Illinois Wellness and Oversight for Psychological Resources Act, 29 SMU Sci. & Tech. L. Rev. 233 (2026)