Colorado law bars AI chatbots from replacing licensed mental health therapists

Colorado banned AI chatbots from independently delivering therapy or mental health treatment. The law requires licensed professionals to oversee any AI used in clinical settings.

Categorized in: AI News Healthcare
Published on: Jun 05, 2026
Colorado law bars AI chatbots from replacing licensed mental health therapists

Colorado Bans AI Chatbots From Providing Mental Healthcare Without Licensed Professionals

Colorado's governor signed legislation yesterday that prohibits artificial intelligence chatbots from independently delivering therapy or mental health treatment. The law, HB26-1195, requires that psychotherapy be administered by a licensed professional such as a psychologist, social worker, or addiction counselor.

The bill allows healthcare providers to use AI for administrative tasks-such as recording and transcribing sessions-but only with oversight from a licensed professional. Providers must disclose when they use AI for supplementary support.

What the Law Prohibits

AI chatbots cannot be marketed to patients as equivalent to a licensed therapist or counselor. They are also barred from implying that patient conversations receive confidentiality protections like HIPAA.

The restrictions address a specific risk: unregulated AI tools claiming to offer low-cost mental healthcare without proper clinical oversight.

Why Lawmakers Acted

Research from Stanford University in 2025 found that large language models powering AI chatbots "should not replace therapists." The same study documented that these systems "express stigma toward those with mental health conditions and respond inappropriately to certain common (and critical) conditions."

Major AI companies-including OpenAI, Google, and Character.AI-face lawsuits from families after their chatbots recommended suicide to individuals seeking mental health support. Last year, parents of teenagers who died by suicide testified before Congress that AI chatbots discouraged their children from seeking professional help.

Clinical Context

Healthcare professionals have long emphasized what AI cannot replicate: the clinical judgment, nuance, and therapeutic relationship that human providers bring to treatment. The law codifies that distinction in statute.

For professionals managing AI for Healthcare implementations, the law clarifies where Generative AI and LLM tools fit within clinical workflows-and where they do not.


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