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Nevada Bans AI From Direct Mental Health Care: AB 406

Nevada now bars licensed providers from using AI in direct patient care and blocks AI tools from posing as therapists. If you deliver behavioral health care to Nevadans, or market an AI therapy tool to them, the rules are in force as of July 1, 2025.

By Anthony Guerriero  ·  Reviewed by The Leveraged Years Editorial Desk  ·  Published July 4, 2026  ·  Last updated July 4, 2026

Nevada Bans AI From Direct Mental Health Care: AB 406 regulation briefing
The Leveraged Years AI Regulation Tracker

The honest read

This is a binding law, not a proposal, and it has been in force since July 1, 2025. Nevada drew a hard line: an AI system cannot be part of delivering care directly to a patient, and it cannot be dressed up as a therapist. AI is not banned from your practice. It is banned from the therapeutic seat. The workable path is to keep AI on the administrative side of the wall and prove you kept it there.

The rule in plain English

Section 8 of AB 406 (a new section of NRS Chapter 629) states that a provider of mental and behavioral health care shall not use an AI system in connection with providing professional care directly to a patient. Section 8(2) permits AI for administrative support only: scheduling, managing records, billing, operational data analysis, and organizing or tracking session files and notes. Section 8(3) requires that administrative use comply with HIPAA, HITECH, and NRS 439.581 to 439.597. Section 8(4) puts the accuracy burden on you: the provider shall independently review any report or data an AI generates for billing records or session notes. Under Section 8(5), violating Section 8 is unprofessional conduct subject to licensing-board discipline.

The law also reaches beyond licensees. Section 7 (a new section of NRS Chapter 433) bars an AI provider from making an AI system available in Nevada that is specifically programmed to provide what would be the practice of professional mental or behavioral health care if a person did it, and from representing an AI system as a provider, therapist, clinical therapist, counselor, or psychiatrist. Section 7(3) restricts the titles therapist, psychotherapist, and counselor to holders of a valid Nevada credential, and Section 7(5) sets a civil penalty of up to $15,000 per violation. That penalty can apply without any license, which is how it reaches AI companies. Section 2 (a new section of NRS Chapter 391) tells Nevada public, charter, and gifted-university schools they may not use AI to perform the mental-health functions of a school counselor, psychologist, or social worker, and directs the Department of Education to develop a policy; administrative tasks stay allowed. All citations are to the enrolled bill text.

Who it hits

Section 8's definition of provider is broad: psychiatrists, psychologists, clinical social workers, marriage and family therapists, clinical professional counselors, psychiatric APRNs, and alcohol/drug and problem-gambling counselors. Solo practices and small groups feel this most, because they are the least likely to have a documented line between clinical and administrative AI use. AI chatbot and companion companies marketing therapy-style tools to Nevadans are exposed under Section 7 even without a license, thanks to the $15,000-per-violation penalty. Nevada school counselors, psychologists, and social workers are covered under Section 2 and should hold AI to administrative tasks until the state policy lands.

What to do this week

For any practice serving Nevada residents or operating under a Nevada license:

1. Inventory every AI tool that touches a patient interaction and pull anything used in direct care. 2. Reclassify permitted AI to administrative-only (scheduling, records, billing, operational analysis, organizing notes) and write down the boundary. 3. Add a written human accuracy-review step for any AI-generated billing record or session note, as Section 8(4) requires. 4. Confirm your administrative AI vendors are HIPAA and HITECH compliant and that a business associate agreement is on file. 5. Scrub marketing, bios, titles, and any website chatbot of "AI therapist," "AI counselor," or "AI psychiatrist" claims. 6. Vet third-party AI companion or therapy integrations you offer to Nevada users against Section 7. 7. If you work in a Nevada school, limit AI to administrative tasks pending the Department of Education policy.

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Frequently Asked Questions

Can a Nevada clinician use AI in patient care at all?

Not directly. Nevada AB 406 bars a mental or behavioral health provider from using AI in connection with providing care directly to a patient. AI is allowed only for administrative support such as scheduling, records, and billing.

What is the penalty?

AI providers or persons who violate the AI-provider section face a civil penalty up to $15,000 per violation. A licensed provider who violates the care section is subject to unprofessional-conduct discipline by their board.

When did it take effect?

The substantive provisions took effect July 1, 2025, so the law is in force now.

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Informational analysis for working professionals, not legal advice. Confirm how any rule applies to your situation with qualified counsel.