California lawmakers are reviewing new limits on AI therapy through Senate Bill 903, a proposal that has cleared the Senate and reached the Assembly Appropriations Committee. The measure would define when artificial intelligence can support psychotherapy, when licensed review is required, and how consent, chatbot marketing, and patient data would be handled.
Key Takeaways
- Senate Bill 903 passed the California Senate 39-0 on May 19, 2026.
- The proposal would generally limit AI in psychotherapy to administrative or supplementary support.
- Recording, transcription, triage, and screening with AI would require disclosure and patient consent.
- Companion chatbots could not be marketed or presented as providing psychotherapy services.
- As of August 11, 2026, SB 903 remains active in the Assembly Appropriations Committee, with an August 13 hearing listed.
AI therapy has moved into a key Assembly stage under Senate Bill 903 after lawmakers advanced a framework centered on licensed professional oversight rather than a blanket prohibition on artificial intelligence in mental health settings.
Introduced by Sen. Steve Padilla on January 21, 2026, SB 903 passed the Senate 39-0 on May 19. The Assembly Business and Professions Committee later advanced it 17-0, followed by a 14-1 vote in the Assembly Privacy and Consumer Protection Committee.
California’s legislative portal lists the measure as an active bill in committee. It was amended on July 2, placed on the Assembly Appropriations suspense file on August 5, and has an August 13 hearing date listed.
Senate Bill 903 Sets Boundaries for AI Therapy
The July 2 bill text would allow entities providing or facilitating psychotherapy services to use AI for administrative or supplementary support. Examples include scheduling, billing, documentation, maintaining records, tracking patient progress, and organizing outside resources or referrals.
The proposal becomes more restrictive when AI moves into clinical functions. Artificial intelligence could not make therapeutic decisions, generate therapeutic recommendations, diagnoses, or treatment plans, detect emotions or mental states, or perform triage or screening without review and approval by a licensed professional.
Direct psychotherapeutic communication would face another condition. AI could not directly interact with a patient or client for that purpose unless the system is approved or cleared by the U.S. Food and Drug Administration for the use and complies with federal health privacy requirements.
The structure reflects a wider discussion around AI in healthcare technology and the role of digital tools in professional care. Under SB 903, covered clinical decisions would remain subject to licensed oversight.
After the Senate vote, Padilla said, “SB 903 draws a clear line: AI can be a tool in the hands of licensed professionals, but it cannot be the professional itself.”
Consent and Chatbot Rules Reshape the Care Workflow
Senate Bill 903 would require disclosure and consent before AI is used to record or transcribe psychotherapeutic communications or sessions, or to conduct triage or screening. Patients, clients, or their authorized representatives would have to be told that AI will be used and informed of its specific purpose.
Consent would need to be a clear affirmative act, documented in the record, and revocable. Broad terms-of-use agreements or passive digital interactions would not qualify, and patients would not surrender rights to care by declining consent for those uses.
Companion chatbots are addressed separately. Entities would be prohibited from advertising or presenting psychotherapy services when those services are provided through companion chatbots, including presenting a chatbot as a therapist or as providing therapy.
The bill does not classify every wellness-oriented AI interaction as psychotherapy. General wellness education that does not diagnose or treat a specific mental, emotional, or behavioral health concern is excluded. Religious counseling, peer support, public self-help materials, certain training uses, and qualifying research are also outside the proposed chapter.
That distinction separates clinical psychotherapy from broader resources related to understanding mental health conditions and general well-being.
Data Privacy and Legislative Status Remain Central
Senate Bill 903 would apply existing medical confidentiality rules to AI use involving psychotherapy records. The bill says companies or entities may not share, sell, store, or train models on psychotherapy data in a manner inconsistent with applicable law.
The FDA has separately examined generative AI-enabled digital mental health medical devices. In November 2025, its Digital Health Advisory Committee discussed potential benefits, health risks, premarket evidence, and postmarket monitoring for those technologies.
The California proposal has support from several mental health professional organizations. ATA Action, the policy and advocacy arm of the American Telemedicine Association, has opposed the measure unless amended, arguing that some provisions could restrict AI tools used by licensed clinicians.
SB 903 has not become law. As of August 11, 2026, it remains in the Assembly Appropriations Committee and its language could still change. For providers, technology companies, and patients following AI therapy, Senate Bill 903 centers the current debate on consent, data handling, chatbot representations, and licensed clinical review.
Frequently Asked Questions
What is California Senate Bill 903?
Senate Bill 903 is a 2026 California proposal governing artificial intelligence used in connection with psychotherapy services. It addresses administrative support, licensed review, patient consent, companion chatbots, and psychotherapy data.
Does Senate Bill 903 ban AI therapy?
No blanket ban on all AI use appears in the current bill text. AI therapy under Senate Bill 903 would face restrictions on certain clinical functions, while specified administrative and supplementary uses could remain available.
Would patients need to consent to AI use?
Consent would be required before AI is used to record or transcribe psychotherapy communications or sessions, or for triage or screening. Patients would also have to be told that AI will be used and informed of its specific purpose.
Has Senate Bill 903 become law?
No. As of August 11, 2026, SB 903 remains an active bill in the Assembly Appropriations Committee, with an August 13 hearing listed on the California legislative portal.
