AI Deregulation: What Therapists Need to Know About the Benefits and Risks

Why AI Deregulation Matters for Therapists

Artificial intelligence (AI) is becoming increasingly integrated into the mental and behavioral health field. From AI-driven therapy chatbots and clinical documentation tools to patient engagement platforms and diagnostic screeners, therapists are adopting AI solutions to extend access and reduce administrative burden.

However, proposals for AI deregulation—reducing or eliminating oversight from agencies like the FDA—have major implications for therapists. While deregulation could make innovative tools more accessible, it also shifts responsibility for safety, privacy, and ethical use directly onto individual practitioners and their organizations.

Potential Benefits of AI Deregulation for Therapists

1. Faster Access to Innovative Tools

   AI products often undergo lengthy regulatory review before approval. Deregulation could shorten this process, allowing therapists to integrate new tools sooner.

   
   

   • Impact: Earlier access to technologies like AI-powered mental health screeners, therapy chatbots, or advanced progress tracking platforms.

   
   

2. Lower Costs for AI Solutions

   By removing the expense and time associated with regulatory approval, vendors may be able to offer AI tools at lower prices.

   
   

   • Impact: Therapists in small private practices or community clinics could afford tools that previously were accessible only to larger organizations.

     
     

3. Expanded Access for Underserved Populations

   AI can help extend mental health support to rural or underserved areas by offering virtual therapy assistance and 24/7 patient engagement tools. Deregulation may accelerate deployment of these services.

The Risks of AI Deregulation for Therapists

1. Patient Safety Concerns

   Without oversight, AI tools may not be thoroughly validated before release.

   
   

   • Why it matters: Inaccurate diagnostic suggestions or poorly designed chatbots could worsen patient outcomes, delay necessary interventions, or even trigger harm in crisis situations.

     
     

2. Privacy and Confidentiality Issues

   Therapists must comply with HIPAA and other privacy regulations. Deregulated AI tools may not meet required data security standards.

   
   

   • Why it matters: A data breach or unauthorized disclosure could damage patient trust, trigger legal action, and violate ethical obligations.

   
   

3. Liability Exposure

   In the absence of regulatory oversight, therapists could face heightened malpractice risk if patients are harmed by AI tools.

   
   

   • Why it matters: It may be harder to demonstrate due diligence without external validation that the tool met minimum safety or efficacy standards.

   
   

4. Difficulty Vetting AI Vendors

   Regulatory clearance currently provides therapists with some assurance that a tool meets baseline standards.

   
   

   • Why it matters: Therapists and small practices would need to develop their own vetting and validation processes—an unrealistic expectation for many who lack compliance or IT support.

   
   

5. Equity and Quality Concerns

   Unregulated AI tools may not undergo bias testing or independent quality audits.

   
   

   • Why it matters: Biases in training data can exacerbate health disparities, particularly among marginalized groups, and compromise therapeutic quality.

   
   

6. Loss of Patient Trust

   Patients may be wary of AI-driven therapy solutions, especially if widely publicized errors occur.

   
   

   • Why it matters: Therapists’ reputations could be harmed by association with unvetted tools, eroding the therapeutic alliance that is central to successful treatment.

Balancing the Risks and Benefits

AI deregulation could make tools more affordable and accessible, helping therapists deliver services to more people. But it also transfers the burden of oversight to therapists themselves, who may not have the time, resources, or technical expertise to thoroughly evaluate AI products.

Therapists will need to:

• Vet AI tools for privacy and security protections

• Understand the tool’s clinical validation and limitations

• Maintain human oversight in all therapeutic decision-making

• Stay informed about emerging best practices and voluntary frameworks (e.g., NIST AI Risk Management Framework)

Bottom Line

AI deregulation has the potential to improve access and reduce costs for therapists and their patients, but it also increases the risk of patient harm, liability exposure, and erosion of trust.

In a deregulated environment, therapists must take a more active role in evaluating and monitoring AI tools to ensure they are safe, effective, and aligned with ethical and legal standards.

Do you have questions about this blog? Please contact jessicazeff@simplycomplianceconsulting.com.