Tennessee Health Care AI Bill - Prohibition on AI as Mental Health Professional

JD Supra Healthcare

Published July 1st, 2026

Detected April 3rd, 2026

Summary

Tennessee enacted SB 1580 (signed April 1, 2026, effective July 1, 2026) prohibiting AI developers and deployers from advertising AI systems as qualified mental health professionals. Violations constitute unfair or deceptive acts under the Tennessee Consumer Protection Act, subject to civil penalties up to $5,000 per violation and private right of action.

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What changed

Tennessee SB 1580 creates a new prohibition under state law making it unlawful for persons who develop or deploy AI systems to advertise or represent to the public that such AI can act as a qualified mental health professional. The law, amending Tennessee Title 33, applies broadly to AI systems defined as "models and capable of performing functions generally associated with human intelligence, including reasoning and learning." Violations are enforceable as violations of the Tennessee Consumer Protection Act of 1977.

AI developers and deployers operating in Tennessee must immediately review all marketing materials, product descriptions, and public representations for any claims that their AI systems can act as qualified mental health professionals, and remove such representations before the July 1, 2026 effective date. Organizations face civil penalties up to $5,000 per violation under the Consumer Protection Act, plus potential exposure to private lawsuits brought by affected parties seeking damages and injunctive relief.

What to do next

Review all marketing materials and public representations for claims that AI systems can act as qualified mental health professionals
Update or remove any prohibited representations from AI products before July 1, 2026
Assess AI systems deployed in Tennessee for compliance with the new requirements and implement necessary modifications

Penalties

Civil penalty of up to $5,000 per violation under Tennessee Consumer Protection Act; private right of action allows affected parties to seek damages and injunctive relief

Source document (simplified)

April 3, 2026

Tennessee Enacts Health Care AI Bill With Private Right of Action

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Key point: Tennessee’s new law prohibits parties that develop or deploy AI systems from advertising or representing to the public that the AI systems can act as a qualified mental health professional.

On April 1, 2026, Tennessee Governor Bill Lee signed SB 1580 into law, and it will go into effect on July 1, 2026. The new law is short — less than one page — but has potentially significant consequences given that it includes a private right of action.

In the following post, we provide an overview of the new law.

New Requirement. The law states that “[a] person who develops or deploys an artificial intelligence system shall not advertise or represent to the public that such system is or is able to act as a qualified mental health professional.”

Key definitions – “Artificial intelligence” and “qualified mental health professional.”

Artificial intelligence. The law defines artificial intelligence (AI) to mean “models and systems capable of performing functions generally associated with human intelligence, including reasoning and learning.”
Qualified mental health professional. The law does not define “qualified mental health professional.” However, the law amends Tennessee’s existing Title 33, which defines that term to mean:
A person who is licensed in the state, if required for the profession, and who is a psychiatrist; physician with expertise in psychiatry as determined by training, education, or experience; psychologist with health service provider designation; psychological examiner or senior psychological examiner; licensed master’s social worker with two (2) years of mental health experience or licensed clinical social worker; marital and family therapist; nurse with a master’s degree in nursing who functions as a psychiatric nurse; professional counselor; or if the person is providing service to service recipients who are children, any of the above educational credentials plus mental health experience with children.

Law includes a private right of action. The law is enforceable through the Tennessee Consumer Protection Act of 1977, with a violation subject to a civil penalty of no more than $5,000 per violation. According to the bill summary, this includes a private right of action:

A violation constitutes a violation of the Tennessee Consumer Protection Act of 1977 and an unfair or deceptive act or practice affecting trade or commerce, and is subject to the penalties and remedies provided in such Act, which includes, but is not limited to, restraining orders, injunctions, private rights of action, and damages.

Rationale for the new law (and others under consideration). During the Senate Health and Welfare Committee hearing on the bill, the bill sponsor, Senator Page Walley, explained that the bill is intended to make clear that only humans can act as qualified mental health professionals. However, during the hearing, Senator Bo Watson raised a concern that the bill could be read to independently apply to developers of AI systems since the bill says “develops or deploys.” He also argued that the language could stifle innovation. Later in the hearing, Walley stated the bill still allows qualified mental health professionals to use AI. Tennessee lawmakers are also considering companion bills (SB 1493 / HB 1455) that would make it a felony to knowingly train AI to encourage the act of suicide or criminal homicide.

Our final thought. Ultimately, businesses that develop or deploy AI products in any proximity to the mental health space will want to take steps to ensure that they do not unintentionally trigger the law, especially in light of its private right of action.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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