Regulon.AI — SC-S-0788 · SC S 788 (AI and Therapy/Psychotherapy)

S-0788

SC · State · USA

USA

● Pending

Proposed Effective Date

2025-01-13

South Carolina S 788 — A bill to amend the South Carolina Code of Laws by adding Article 5 to Chapter 1, Title 40, so as to provide definitions related to artificial intelligence and therapy or psychotherapy; to provide that a licensed professional shall not be permitted to use artificial intelligence to assist in providing supplementary support in therapy or psychotherapy where the client's therapeutic session is recorded unless the patient is informed that artificial intelligence will be used and for what purpose and the patient consents to this use; to provide that an individual, corporation, or entity may not offer therapy or psychotherapy services, including through the use of internet-based artificial intelligence, unless the therapy or psychotherapy services are conducted by a licensed professional; to provide that a licensed professional may not allow artificial intelligence to make independent therapeutic decisions; to require that all records kept by a licensed professional be kept confidential; to provide exceptions; and to provide penalties for violations.

Regulates the use of artificial intelligence in therapy and psychotherapy services in South Carolina. Licensed professionals may use AI only for administrative and supplementary support — not for independent therapeutic decisions, direct therapeutic communication with clients, generating unreviewed treatment plans, or detecting emotions or mental states. When AI is used to record or transcribe therapy sessions, written informed consent from the patient is required. No individual, corporation, or entity may offer therapy or psychotherapy services through AI (including internet-based AI) unless conducted by a licensed professional. Enforcement is through the appropriate licensing board, which may assess civil penalties up to $10,000 per violation. Religious counseling, peer support, and self-help materials are exempt.

Summary

Enforcement & Penalties

Enforcement Authority

The appropriate licensing board for each licensed professional has authority to investigate any actual, alleged, or suspected violation and to assess civil penalties. Enforcement is agency-initiated through the licensing board. No private right of action is created.

Penalties

Civil penalty not to exceed $10,000 per violation, assessed by the appropriate licensing board. The amount is based on the degree of harm and the circumstances of the violation. Penalties must be paid within sixty days of imposition. No private damages, injunctive relief, or attorney fees provisions.

Who Is Covered

"Licensed professional" means an individual who holds a valid license issued by this State to provide therapy or psychotherapy services, including: (a) a licensed clinical psychologist; (b) a licensed clinical social worker; (c) a licensed social worker; (d) a licensed psychiatrist; (e) a licensed professional counselor; (f) a licensed marriage and family therapist; (g) addiction counselor; and (h) any other professional authorized by this State to provide therapy or psychotherapy services.

Compliance Obligations 4 obligations · click obligation ID to open requirement page

HC-02 AI in Licensed Professional Practice Restrictions · HC-02.4 · Professional · Healthcare

S.C. Code § 40-1-710

Plain Language

Before using AI to record or transcribe a therapy or psychotherapy session for supplementary support purposes, the licensed professional must inform the patient (or their legally authorized representative) in writing that AI will be used and explain the specific purpose of that use. The patient or representative must provide written consent. This applies only when the AI use involves recording or transcription of sessions — administrative support tasks that do not involve session recording are not subject to this consent requirement.

Statutory Text

A licensed professional shall not be permitted to use artificial intelligence to assist in providing supplementary support in therapy or psychotherapy where the client's therapeutic session is recorded or transcribed unless: (1) the patient or the patient's legally authorized representative is informed in writing: (a) that artificial intelligence will be used; and (b) of the specific purpose for which the artificial intelligence tool or system will be used; and (2) the patient or the patient's legally authorized representative provides written consent to the use of artificial intelligence.

HC-02 AI in Licensed Professional Practice Restrictions · HC-02.3 · ProfessionalDeployer · Healthcare

S.C. Code § 40-1-720(A)

Plain Language

No person, company, or entity may offer, advertise, or provide therapy or psychotherapy services to the public in South Carolina — including via internet-based AI — unless those services are conducted by a state-licensed professional. This effectively prohibits standalone AI therapy products that operate without a licensed professional conducting the services. Religious counseling and peer support are carved out from the definition of therapy or psychotherapy services and are therefore not subject to this requirement.

Statutory Text

(A) An individual, corporation, or entity may not provide, advertise, or otherwise offer therapy or psychotherapy services, including through the use of internet-based artificial intelligence, to the public in this State unless the therapy or psychotherapy services are conducted by a licensed professional.

HC-02 AI in Licensed Professional Practice Restrictions · HC-02.1 HC-02.2 · Professional · Healthcare

S.C. Code § 40-1-720(B)

Plain Language

Licensed professionals face four categorical prohibitions on AI use in therapy: (1) AI may not make independent therapeutic decisions; (2) AI may not directly interact with clients in any therapeutic communication; (3) AI may not generate therapeutic recommendations or treatment plans unless the licensed professional reviews and approves them first; and (4) AI may not detect emotions or mental states. Any AI use must also comply with the informed consent requirements of Section 40-1-710, and the licensed professional must maintain full responsibility for all interactions, outputs, and data use. Permitted AI uses are limited to administrative and supplementary support under these conditions.

Statutory Text

(B) A licensed professional may use artificial intelligence only to the extent the use meets the requirements of Section 40-1-710. A licensed professional may not allow artificial intelligence to: (1) make independent therapeutic decisions; (2) directly interact with clients in any form of therapeutic communication; (3) generate therapeutic recommendations or treatment plans without review and approval by the licensed professional; or (4) detect emotions or mental states.

D-01 Automated Processing Rights & Data Controls · Professional · Healthcare

S.C. Code § 40-1-730

Plain Language

All records maintained by a licensed professional — which would include any AI-generated notes, transcripts, or data products — and all communications between the professional and the patient are confidential. Disclosure is permitted only as required under the existing South Carolina confidentiality exception in Section 44-22-100 (governing disclosure of mental health records). This effectively extends existing therapy confidentiality obligations to cover AI-processed data and outputs.

Statutory Text

All records kept by a licensed professional and all communications between an individual seeking therapy or psychotherapy services and a licensed professional shall be confidential and shall not be disclosed except as required pursuant to Section 44-22-100.