WSJ What’s News WSJ What’s News

The Wild West of AI Therapy Laws

Aug 23, 2026 · 18m

Summary

This WSJ episode examines the patchwork of state laws restricting AI mental health chatbots, using Illinois’ ban on “AI therapy” as a case study. It explores how companies like Slingshot and Talkspace navigate these regulations by rebranding their tools or emphasizing privacy safeguards. The discussion also covers the lack of federal oversight, data privacy risks, and the FDA’s emerging role in evaluating AI as a medical device for mental health care.

Topics discussed

Intro: AI therapy bans and user impact Defining AI therapy vs mental health tools State laws restricting AI therapy bots Critiques of bans and regulatory navigation Privacy risks and data consent concerns FDA advisory committee and pilot programs Future integration and human-AI dynamics
Listen ad-free on Castria