Wire · regulatory
As AI 'Therapists' Dish Out Advice, California Lawmakers Try to Set Some Limits
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Fusion42 · 30 August 2026 · Fusion42 review
California legislators are considering Senate Bill 903 which would restrict the advertising of AI chatbots as therapy and impose rules requiring licensed professional oversight of AI in mental health care. The bill aims to protect consumers and clinicians by banning AI from practicing psychotherapy and mandating disclosure when AI tools are used in therapy or triage.
This Wire brief sits within Fusion42's coverage of Healthtech Infrastructure.
◆ ◆ The Wire takeaway
You face new constraints on marketing and deploying AI mental health chatbots in California; ensuring a licensed professional reviews any AI therapeutic use is now legally essential. This legal checkpoint creates an opening to build compliant tools that support clinicians rather than replace them.
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1 source · 6 Aug 2026
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