On April 1, 2026, Tennessee enacted Senate Bill (SB) 1580 as Public Chapter No. 647, prohibiting any person who develops or deploys an artificial intelligence (AI) system from advertising or representing to the public that the AI system is, or can act as, a qualified mental health professional.
The law creates a new section under Tennessee Code Annotated § 33-1-205 and treats violations as unfair or deceptive acts or practices under the Tennessee Consumer Protection Act of 1977, subject to a $5,000 civil penalty per violation and enforceable through a private right of action.
This update applies to persons and businesses that develop or deploy AI systems in Tennessee, including those that offer market, or make available, AI-enabled mental health tools effective July 1, 2026.
What Employers Need to Do
- Review Employee Assistance Program (EAP), wellness vendor, and mental health benefit vendor communications to confirm that AI-enabled tools are not being marketed or represented to employees as qualified mental health professionals.
- Update internal communications, benefit descriptions, and vendor materials to make clear that AI tools may support, but do not replace qualified mental health professionals.
- Coordinate with vendors and any internal teams involved with AI-based mental health tools to ensure public-facing descriptions and marketing materials comply with the law before July 1, 2026.
- Train Human Resources (HR), benefits, and communications teams on the distinction between AI tools that support mental health care and AI tools represented as substitutes for licensed professionals, so internal messaging and vendor selection stay aligned with the law.
Overview
What the Law Prohibits
- A person who develops or deploys an AI system may not advertise or represent to the public that the AI system is, or can act as, a qualified mental health professional.
- The law does not ban the use of AI in mental health settings. Licensed mental health professionals may still use AI as a tool; the restriction targets misleading public representations about what AI can do.
Key Definitions
- Artificial intelligence (AI): Models and systems capable of performing functions generally associated with human intelligence, including reasoning and learning.
- Qualified mental health professional: SB 1580 relies on existing Tennessee law definition that includes various licensed mental health professionals, such as psychiatrists, psychologists, licensed social workers, marital and family therapists, psychiatric nurses, and professional counselors.
Enforcement and Penalties
- Violations are treated as violations of the Tennessee Consumer Protection Act of 1977 and as unfair or deceptive acts or practices affecting trade or commerce.
- Civil penalty of $5,000 per violation, notwithstanding the general civil penalty limits under the Tennessee Consumer Protection Act.
- Private right of action available. Remedies may include damages, restraining orders, and injunctions.
Why This Matters
This law establishes a clear consumer-protection line for AI in mental health: while AI tools may be developed and used, they cannot be marketed or represented as licensed or qualified mental health professionals.
Employers offering AI-enabled EAP, wellness, or mental health benefits to their workforce should confirm that vendor materials and internal communications do not cross that line, since the law reaches those who “deploy” AI systems, not just developers.
Key Risks for Employers
- EAP, wellness, or mental health benefit vendors that market AI tools as replacements for licensed professionals may create compliance risk for employers that provide or deploy those tools.
- Internal or employee-facing communications describing AI tools as substitutes for licensed mental health professionals may create compliance concerns under the law.
- Employees or members of the public may bring lawsuits independently of state enforcement, expanding potential exposure beyond regulatory action.
- Because violations are treated as unfair or deceptive acts under the Tennessee Consumer Protection Act, enforcement actions could create operational and reputational risks in addition to the $5,000 per-violation penalty.
Source References
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