JOINT RELEASE: Law to Establish Guardrails for AI in Healthcare Goes into Effect

DENVER, CO – New legislation to ensure patients’ continued access to mental healthcare provided by a licensed human professional will go into effect on August 12. 

“AI chatbots are being mistaken by patients as legitimate therapy, which is why we’re stepping up to ensure Coloradans are protected and informed,” said Rep. Gretchen Rydin, D-Littleton. “Going into effect this month, HB26-1195 establishes reasonable protective measures on AI use in mental and behavioral health care, including prohibiting the use of AI to independently provide therapy to a patient. This law does not hamper licensed professionals’ use of AI for administrative purposes, but does require all clinical treatment and psychotherapy to be administered by a licensed, human provider.”

“No AI-generated algorithm can replace the expertise, nuance, and connection that human healthcare professionals utilize to treat their patients,” said Sen. Kyle Mullica, D-Thornton. “With this new law, we’re establishing necessary guardrails to ensure proper access to quality care for those who need it most.”

“Human-centered care should be at the forefront of healthcare in Colorado,” said Rep. Javier Mabrey, D-Denver. “AI chatbots are biased, unlicensed tools, and they should not be used for therapy and treatment recommendations without oversight and transparency. Without this law, there is no clinical standard for AI chatbots, which can ultimately harm patients’ access to high-quality healthcare. This law protects patients while still allowing providers to take advantage of AI tools for administrative tasks.”

“As policymakers, we cannot let chatbots, several of which are currently facing major lawsuits due to wrongful and horrifying deaths, replace certified mental health providers,” said Sen. Judy Amabile, D-Boulder. “Some AI models serve as bad actors claiming to offer low-cost care – but this new law puts guardrails in place to ensure patients receive the quality, human care they deserve.”

HB26-1195 sets standards in clinical settings, limiting the use of artificial intelligence (AI) to administrative tasks with oversight by a licensed professional. Providers must disclose the use of AI for supplementary support, such as recording or transcribing meetings. To ensure patients receive legitimate behavioral healthcare, this new law makes sure that psychotherapy is human-delivered by a licensed professional, such as a social worker, psychologist or addiction counselor. 

To protect consumers and ensure access to quality care, this legislation will prohibit AI chatbots from being marketed to patients as equivalent to a licensed psychotherapist or counselor. AI chatbots will also be barred from implying patient input is covered by commonplace confidentiality protections like HIPAA. 

In 2025, researchers at Stanford University recommended that Large Language Models (LLMs), which power AI chatbots, “should not replace therapists.” Additionally, researchers concluded that “LLMs express stigma toward those with mental health conditions and respond inappropriately to certain common (and critical) conditions.” 

Top AI companies, including OpenAI, Google, and Character.AI, are all facing lawsuits from families after AI chatbots recommended suicide to a person seeking behavioral health advice or support. Last year, parents of children who died by suicide testified before Congress, stating AI chatbots discouraged their teens from seeking support.