AI Frontier Institute

Artificial Intelligence and Therapy or Psychotherapy

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South Carolina S. 788 adds Chapter 86 to Title 40 of the S.C. Code to regulate the use of artificial intelligence (AI) in therapy and psychotherapy. Under Section 40-86-20, a licensed professional may use AI to assist with supplementary support only if the patient (or their legally authorized representative) is informed in writing that AI will be used and of its specific purpose, and provides written consent, whenever a therapeutic session is recorded or transcribed. Section 40-86-30 prohibits any individual, corporation, or entity from offering therapy or psychotherapy services—including through internet-based AI—unless those services are conducted by a licensed professional. It further bars licensed professionals from allowing AI to make independent therapeutic decisions, directly interact with clients in therapeutic communication, generate treatment plans without professional review, or detect emotions or mental states. Section 40-86-40 requires all client records and communications to remain confidential per Section 44-22-100. Section 40-86-50 exempts religious counseling, peer support, and general public self-help or educational materials. Section 40-86-60 establishes civil penalties up to $10,000 per violation, assessed by the appropriate licensing board, payable within 60 days, with board authority to investigate violations. Sections 2–5 cross-reference Chapter 86 for psychiatrists and other medical professionals (Section 40-47-39), psychologists (Section 40-55-200), social workers (Section 40-63-310), and professionals under Chapter 75 (Section 40-75-1210), limiting their AI use to what Chapter 86 permits.

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