Navigating the new Illinois AI therapy law HB 1806, the Wellness & Oversight for Psychological Resources Act

As the AI regulatory landscape continues to rapidly evolve, Illinois has led the way with a new law, the Wellness and Oversight for Psychological Resources Act (or HB 1806). The new Illinois AI therapy law establishes critical new guardrails for the use of artificial intelligence (AI) in mental healthcare and therapy services. 

It's essential for all licensed clinicians to understand the implications.

Essentially, the Wellness and Oversight for Psychological Resources Act sets some clear ground rules for how therapists can use AI in their private practices.

This guide is designed to help therapists and clinicians understand the key requirements of this new law and adjust their private practices to ensure compliance, with a specific focus on features like SimplePractice’s AI-powered Note Taker.

[DISCLAIMER: This guide is for informational purposes and is not a substitute for legal advice. SimplePractice is not liable for your compliance with IL HB 1806.] 

Understanding the core tenets of HB 1806

The central purpose of the Wellness and Oversight for Psychological Resources Act is to protect clients by ensuring that therapy and psychotherapy services are delivered by licensed clinicians and to place boundaries on the use of AI.

The law makes a clear distinction between prohibited and permitted uses of AI.

So, what can clinicians in Illinois use AI for?

The new Illinois legislation allows therapists to use AI for behind-the-scenes, administrative work like preparing therapy notes, getting client files ready, managing appointments, analyzing data, and handling billing.

The law says therapists can't use AI to make independent therapeutic decisions, generate treatment plans without professional review, or detect emotions/mental states. 

Additionally, the law prohibits therapists using AI chatbots to interact directly with clients for therapeutic care. 

Permitted uses of AI

The law recognizes that AI can be a valuable tool for administrative and supplementary support. 

Therapists and clinicians are permitted to use AI for tasks such as:

• Preparing and maintaining client records, including therapy notes
• Drafting documentation with clinicians' review required (e.g. session notes)
• Managing appointment scheduling and reminders.
• Processing billing and insurance claims.
• Drafting general communications that do not include therapeutic advice.
• Analyzing anonymized data to track client progress or identify trends 

Critical Consent Requirement: Therapists and clinicians who use AI to record or transcribe therapy sessions for supplementary support must first obtain explicit signed consent from the client.

This is a key area where your SimplePractice workflow may need to be updated.

Prohibited uses of AI

The Illinois AI therapy ban expressly prohibits therapists and clinicians from using AI to:

• Make independent therapeutic decisions.
• Directly interact with clients in any form of therapeutic communication.
• Generate therapeutic recommendations or treatment plans without your professional review and final approval.
• Detect emotions or mental states.

This means that any AI-driven chatbots or tools that engage in direct therapeutic dialogue with clients or that formulate treatment plans on their own are not permissible for use in your practice.

As a reminder, the bottom line is that the therapist is always the one responsible for making sure they follow these rules. If they don't, they could face a hefty fine—up to $10,000 for each violation.

Steps for Illinois-based clinicians to ensure compliance

1. Review and update your forms: If you use any AI-assisted tools within your practice (including features, such as SimplePractice’s AI-powered Note Taker or integrated third-party applications) for supplementary support with recorded or transcribed sessions, you must obtain a new, specific consent for AI from your clients. The consent must be "a clear, explicit affirmative act" and cannot be buried in general terms of service. You will need to create a dedicated consent form for this purpose. A sample form is provided below.
2. Evaluate your SimplePractice features and integrations: Carefully review any AI-based features or integrations you are using.
3. SimplePractice's AI-powered Note Taker: This feature uses AI to transcribe audio from a session and then draft a progress note. Because this involves the transcription of a therapeutic session, you must obtain the client's explicit signed consent before using it.
4. Prohibited AI: Immediately cease using any AI tools that make independent therapeutic decisions, or directly communicate with clients in the role of a therapist.
5. Administrative AI: The use of AI for tasks like appointment reminders and billing is generally permitted without this specific consent form, as it falls under administrative support and does not involve therapeutic communication.
6. Client communication: Be transparent with your clients about your use of technology. And ensure clients have time to ask questions about your use of technology. Allowing time for their questions and providing answers is core to ethical informed consent. If you are implementing a new consent form, take the time to explain to your clients what the new law requires and how it affects their data. This builds trust and ensures they are providing truly informed consent.
7. Documentation: As always, maintain meticulous records. The new consent form must be signed and stored securely in the client's file. SimplePractice's secure Client Portal is an excellent tool for this, allowing clients to sign and submit forms digitally.

Sample Consent for Use of Artificial Intelligence (AI) Tools in Your Therapy Services

Introduction

At [Therapist Name/Practice Name], we are [I am] committed to providing you with the best possible treatment. To help us [me] manage our [my] practice efficiently and enhance our [my] services, we [I] use technology, including certain artificial intelligence (AI) tools.

This document explains how we [I] use these tools and asks for your consent to use them as part of your treatment. Your privacy, confidentiality, and the quality of your treatment remain our highest priorities.

How We [I] Use AI Tools

AI tools are used strictly for administrative and supplementary support tasks under the direct supervision of your therapist. These tools do not provide therapy, make independent clinical decisions, or interact with you directly.

The specific purposes for which we [I] may use AI now and in the future include:

• Assisting your therapist in drafting and organizing session notes;
• Managing appointment scheduling and/or sending reminders;
• Processing billing and insurance claims;
• Analyzing data to identify therapy trends and track progress, which is always reviewed by your therapist; 
• Analyzing business information and generating reports or trends to help me manage my business; or
• Helping to identify and organize external resources or referrals for your use.

How We [I] DO NOT Use AI Tools

To be clear, we [I] do not use AI to:

• Make independent therapeutic decisions or diagnoses;
• Communicate with you directly to provide therapeutic advice;
• Generate treatment recommendations without the direct review, approval, and input of your licensed therapist; or
• Detect or interpret your emotions or mental state.

Consent for Session Transcription (If Applicable)

[Therapist: Include this section only if you use AI tools that record or transcribe sessions to assist with note-taking.]

To help create accurate and detailed session notes, your therapist uses [I use] an AI tool called Note Taker that transcribes our sessions and then prepares a draft progress note. Note Taker is a feature in the Electronic Health Record and practice management platform that I use from SimplePractice. 

Please check one of the following:

• [ ] I consent to the use of an AI transcription tool to record and transcribe my therapy sessions for the purpose of assisting my therapist with note-taking.
• [ ] I do not consent to the use of an AI transcription tool to record or transcribe my therapy sessions. I understand this will not affect the quality of my care.

Your Rights and Confidentiality

• Confidentiality: All information, including any data processed by an AI tool, is treated as part of your confidential health record and is protected by the same privacy and security standards as all other aspects of your care, including HIPAA.
• SimplePractice and its Note Taker tool are HIPAA-compliant and HITRUST certified.  
• All audio-recordings of therapy sessions through Not Taker are immediately deleted as soon as a transcript is created, generally within minutes of a session ending. 
• Transcripts that are created through Note Taker are only retained for the shorter of 7 days or when the progress note is signed and locked by your therapist. After that, they are permanently deleted.  
• During the time that transcripts are available in Note Taker, they always remain confidential and secure, and are only available for your therapist’s use to verify the accuracy of the progress note. They are not used for any other purpose. 
• Right to Revoke Consent: Your consent is voluntary. You have the right to withdraw this consent at any time by notifying your therapist in writing. Revoking your consent will not affect your ability to receive therapy services.

Client Acknowledgment and Consent

By signing below, I confirm that:

1. I have read and understood this form.
2. I have had the opportunity to ask questions about the use of AI tools in my treatment.
3. I voluntarily agree to the use of AI tools for the purposes described above.

Client Name (Printed)________________________________

Client Signature________________________________

Date____________

[Drafting Note for Therapists: This form is designed to align with the consent requirements of Illinois's Wellness and Oversight for Psychological Resources (WOPR) Act, including the need for a specific and revocable written agreement when using AI to record or transcribe sessions. To adapt it for your practice, be sure to fill in your practice name and remove the "Session Transcription" section if you do not use such tools. The section regarding Confidentiality is drafted based on the features and data retention practices of SimplePractice and its Note Taker product. If you are using a different product, be sure to adjust the language to conform with the applicable vendor’s practices. While this form is a robust starting point, it is always a best practice to consult with your own legal counsel or professional liability insurance provider to ensure your consent documents meet all specific state and local requirements.]

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