Authors
SB 903
Senator Steve Padilla (D–-San Diego) introduced Senate Bill 903 seeking to regulate the use of artificial intelligence in mental health services. Titled the “Wellness and Oversight for Psychological Resources Act,” the legislation aims to ensure that therapy and psychotherapy services remain under the control of qualified, licensed professionals, rather than artificial intelligence.
The Bill emerges amid a growing trend of consumers turning to AI for mental health support. California faces a significant shortage of mental health providers, with a substantial portion of the state’s population living in areas with insufficient provider-to-patient ratios. This gap has led to increased use of AI tools for therapy and the development of AI-powered tools marketed as “AI therapists.” Mental health professionals have raised concerns that such tools pose data privacy risks, provide incorrect treatment recommendations, and lack the ability to detect nuanced communication cues that are essential to effective therapy.
SB 903 would impose several restrictions on AI use in therapeutic settings:
- Prohibition on unlicensed AI therapy services: No individual, corporation, or entity would be permitted to provide, advertise, or offer psychotherapy services in California unless a licensed professional conducts those services.
- Restrictions on licensed professional AI use: Licensed professionals would be prohibited from allowing AI to make independent therapeutic decisions, directly interact with clients in therapeutic communications (unless using an FDA-approved and HIPAA-compliant product), generate therapeutic recommendations or treatment plans without professional review and approval, or detect emotions or mental states.
- Consent requirements for AI recording: Before AI may be used to record or transcribe a client’s therapeutic session, the licensed professional must inform the patient in writing that AI will be used, outline its specific purpose, and obtain the patient’s written consent. The legislation would prohibit the use of general terms to obtain the patient’s consent. A separate consent form would be required.
The legislation defines “licensed professional” broadly to include licensed clinical psychologists, licensed clinical social workers, licensed professional clinical counselors, licensed marriage and family therapists, registered or certified alcohol or drug counselors, psychiatric mental health nurse practitioners, and other state-authorized therapy providers.
Exceptions to SB 903
Notably, if enacted, SB 903 would not prohibit all AI use in mental health practice. Licensed professionals could use AI for “administrative support” – such as scheduling, billing, and logistical communications – and for “supplementary support” tasks like preparing client records or organizing referrals, provided they maintain full responsibility for all AI outputs and comply with the Bill’s requirements.
The Bill also includes several exemptions. SB 903 would not apply to any form of religious counseling, peer support services offered by individuals with lived mental health or recovery experience, or self-help materials and educational resources available to the public that do not purport to offer therapy. SB 903 is intended to protect consumers from unlicensed or unqualified providers, including unregulated AI systems, while respecting individual choice and access to community-based and faith-based mental health support.
Enforcement and next steps
Violations of SB 903 would result in fines of up to $10,000 per violation, with penalties assessed based on the degree of harm and the circumstances of the violation.
SB 903 is expected to be heard in the Senate in the coming months, and its provisions may evolve as it moves through the legislative process.
As a leader in ethical AI use, Reed Smith will be tracking this legislation closely.
Client Alert 2026-052