Medicaid Monitor
Policy Intelligence
Medicaid Monitor
Policy Intelligence
Updated 6:49 AM MT
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State Policy·CA·August 6, 2026

California Bill Would Ban AI Chatbots From Advertising as Therapy

California SB 903, authored by Sen. Steve Padilla, would prohibit companies from marketing AI chatbots as therapy, require licensed professional review of AI therapeutic decisions, and mandate patient consent before using AI tools to record sessions or triage mental healthcare. The bill is backed by professional associations and the National Union of Healthcare Workers, which recently filed a complaint against Kaiser Permanente for alleged use of automated algorithms in mental health triaging. Supporters say safeguards are needed to protect consumers and licensed professionals; opponents focus on restrictions for clinical AI use. The legislation comes amid wrongful death lawsuits in California federal courts accusing AI chatbot makers of contributing to user suicides.

Why it matters

If enacted, SB 903 would impose new compliance requirements on Medicaid managed behavioral health organizations using AI for mental health services, including disclosure obligations and prohibitions on automated clinical decision-making without professional oversight.

Behavioral Health · Managed Care

Read the full article at calmatters.org

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