States have passed 14 new laws this year regulating the use of AI in healthcare
State legislators have restricted the use of AI in medical procedure authorizations, and prohibited AI chatbots from replacing licensed mental health therapists. (Photo by National Cancer Institute on Unsplash)
July 27, 2026 — State legislators have heard concerns from both patients and medical professionals about the inappropriate use of AI tools, and so far in 2026 they’ve responded with more than a dozen new laws adopted in 11 different states.
According to the Transparency Coalition’s recently released 2026 Mid-Year State AI Legislation Report, seven states limited the use of AI in medical authorization decisions made by healthcare insurance companies. Five states prohibited the offering of AI chatbot-based therapy services.
Iowa enacted a law requiring patient consent when using AI to record and transcribe clinical interactions, while Utah enacted a law that specified that AI does not qualify as an innovation or technology upgrade within a medical clinic’s scope of practice.
We have all the new 2026 measures below, categorized by area of concern.
limiting ai use in medical authorizations
These new laws address a widespread concern over the use of AI models by healthcare insurance companies to automatically approve or deny medical procedures.
Most versions of the laws adopted in this space require a human medical professional in the authorization decision loop. They also typically require a decision to be based on the patient’s medical history and circumstances, and not solely on group data.
Alabama
SB 63: Use of AI in healthcare insurance authorizations
This Act regulates the use of AI by healthcare insurers to make prior authorization determination. Insurers must disclose AI use, and AI-determined decisions must be based on the patient’s medical history and unique clinical circumstances. Denials must be made by a licensed physician or healthcare professional. Sponsor: Orr.Enacted April 17, 2026. Effective Oct. 1, 2026.
Colorado
HB 1139: Regulating AI use in healthcare authorization decisions
This Act requires healthcare insurers to base their medical authorization decisions on a patient’s medical history, individual clinical circumstances, and not solely on group data. A denial of coverage must be reviewed by a licensed clinician or physician. Sponsors: Joseph, Lieder. Enacted June 2, 2026. Effective Jan. 1, 2027.
Georgia
SB 444: Use of AI in healthcare insurance decisions
This bill prohibits decisions regarding insurance coverage of healthcare decisions from being based solely on AI systems or software tools. Sponsors: Kirkpatrick, et al. Enacted May 5, 2026. Effective Jan. 1, 2027.
Illinois
SB 3114: Restricting the use of AI in healthcare approvals
This bill prohibits a health care payor from implementing any policy or using any algorithm or other automated process, system, or tool that bypasses the evaluation of all information included by the billing health care professional to downcode a claim. SB 3114 provides that a health care payor may use an automated process to identify claims that may justify a downcoding determination, but all downcoding determinations must be made or reviewed by a natural person. Sponsors: Koehler, et al. Awaiting governor’s signature.
Iowa
HF 2635: Use of AI in healthcare authorization decisions
This Act concerns health insurance standards of conduct. Under the Act, insurers may use AI to provide initial review of a prior authorization request, but may not base their decision to deny, delay, or downgrade the request solely on AI. Enacted May 13, 2026.
Utah
SB 319: Regulating AI use of in healthcare insurance authorizations
This Act updates requirements for health insurance preauthorization decisions to include restrictions around the use of AI. Insurers must post preauthorization information on their website, and disclose the use of AI in the authorization review process. SB 319 also requires an individual reviewing an adverse preauthorization determination to use independent medical judgment and not rely solely on recommendations from any other source. The Act includes a time limit to make an authorization determination; provides minimum periods that an authorization must be valid for chronic or long-term care conditions; and requires an insurer to provide information regarding an adverse determination. Sponsors: Johnson, Hall. Enacted March 19, 2026. Effective Jan. 1, 2027.
Washington
SB 5395: AI use in healthcare prior authorization decisions
This Act expands on existing law to require transparency and accountability with the use of AI in the prior authorization determination process. The new law specifies that only a licensed physician or a licensed health professional may deny a prior authorization request based on medical necessity. Artificial intelligence shall not be the sole means used to deny, delay, or modify health care services. Sponsors: Orwall, Muzzall, et al. Enacted March 23, 2026. Effective June 11, 2026.
Therapy chatbot bans
Last year Illinois and Nevada became the first states to prohibit the commercial offering of therapy services via AI chatbots. Those early efforts found overwhelming support from mental health professionals, who worked with state lawmakers this year to pass similar restrictions.
The AI therapy chatbot bans largely rely on the state’s authority to license medical professionals, including psychologists, psychiatrists, and most forms of mental health counseling and therapy.
Colorado
HB 1195: Prohibition of AI therapy chatbots
This Act prohibits the use of AI therapy chatbots, and includes specific limitations on the use of AI technology by licensed psychologists, counselors, social workers, marriage and family therapists, and any other individual lawfully permitted to provide psychotherapy services. Sponsors: Mabrey, et al.Enacted June 3, 2026. Effective Aug. 12, 2026.
Maine
LD 2082: Prohibiting AI therapy chatbots
This bill would prohibit the use of AI to provide therapy or psychotherapy services. Offering therapy via AI without a licensed professional would be considered an unfair trade practice under Maine law. Sponsors: Kuhn, Pierce. Enacted April 13, 2026. Effective July 29, 2026.
Rhode island
H 7349 and S 2197, Oversight of AI in Mental Health Care Act
These identical Acts prohibit any individual or business from providing, advertising, or otherwise offering therapy or psychotherapy services in Rhode Island unless the therapy or psychotherapy services are conducted by an individual who is a licensed professional or provider. The Act makes clear that a licensed provider may not use AI to make independent therapeutic decisions or determine therapeutic recommendations or treatment plans. Sponsors: Spears, Urso, et al. Enacted June 22, 2026. Effective Jan. 1, 2027.
Tennessee
SB 1580: Prohibiting AI therapy chatbots
This Act prohibits a person or organization from developing or deploying an AI system that advertises or represents that the system can act as a qualified mental health professional. Sponsors: Walley, Crowe, Yarbro, Reeves. Enacted April 1, 2026. Effective July 1, 2026.
Vermont
H 816: A therapy chatbot ban
This Act safeguards individuals seeking mental health services in Vermont from psychological harm, including death by suicide, by ensuring that those services are delivered by mental health professionals and not independently by artificial intelligence systems. Sponsors: Berbeco, Arsenault, Priestley) Enacted and effective June 17, 2026.
Patient consent required
Iowa
HB 475: Patient consent required for AI use (medical recordings)
HB 475 requires licensed healthcare professionals to verbally disclose the use of any recording device, software, or service to a patient before recording any part of an appointment to be transcribed by artificial intelligence. Violations will be handled by the professional licensing board and are not subject to civil liability in the absence of gross negligence or willful misconduct. Sponsor: Berault. Enacted June 2, 2026. Effective Aug. 1, 2026.
Scope of practice limitations
Utah
SB 150: Limiting the use of AI in medical scope of practice
This Act concerns healthcare practices regulated by the Utah Office of Professional Licensure Review, and includes restrictions on the use of AI. The bill specifies that when considering an “innovation” (upgrade in technology), the definition of innovation specifically does not include an upgrade in technology that solely functions to provide advice or treatment to a patient without an interaction between a healthcare practitioner and patient. Sponsors: Vickers, Dunnigan. Enacted March 24, 2026.
read the full 2026 mid-year report