Tech Giants Grapple with AI Mental Health Risks Amid State Regulations

Aug 06, 2025
Axios
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Summary

Major tech companies are implementing safeguards as concerns arise over users seeking mental health advice from AI chatbots, while several states regulate or prohibit the use of AI systems for direct mental health services, posing challenges for investment firms betting on AI therapy chatbots.

Key Points

  • Tech firms introduce guardrails as concerns grow over people relying on AI chatbots for mental health advice.
  • States like Illinois ban using AI systems for direct mental health services, while Nevada, Utah, and New York regulate their use.
  • Investment firms continue to bet on AI therapy chatbots designed for counseling, but face challenges like FDA approval.

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