Not legal advice. I am a software developer, not a lawyer. This page summarizes the enacted text of one Illinois law, read on October 30, 2026, and links to it. Ask your licensing board or a lawyer before you change how you document sessions. Disclosure: I make Tapefolio, a transcription app that runs on the Mac. It is mentioned once below, with its limits.
The short answer
In Illinois, a licensed therapist may use AI to help keep records of a session that is recorded or transcribed only after telling the client in writing that AI will be used and what for, and getting the client's written consent. The rule applies whether the AI runs on a vendor's servers or on your own computer. Breaking it can cost up to $10,000 per violation.
What the Illinois law says
The law is the Wellness and Oversight for Psychological Resources Act, Public Act 104-0054 (House Bill 1806). The General Assembly's bill page lists it as effective August 1, 2025. In plain terms:
- Who it covers (Section 10). Anyone licensed in Illinois to provide therapy or psychotherapy, including clinical psychologists, clinical and other licensed social workers, professional and clinical professional counselors, marriage and family therapists, and advanced practice psychiatric nurses. It does not apply to religious counseling, peer support, or public self-help materials (Section 35).
- What AI may help with. "Administrative support", such as scheduling, billing and logistics messages, and "supplementary support", which the Act says includes preparing and maintaining client records, including therapy notes (Section 10).
- The consent rule (Section 15(b)). If AI is used for supplementary support and the session is recorded or transcribed, the client (or a legally authorized representative) must first be told in writing that AI will be used and its specific purpose, and must consent.
- What counts as consent (Section 10). A clear, written, affirmative agreement, which can be electronic, and which the client can revoke. Accepting a general terms-of-use document does not count.
- What AI may never do (Section 20(b)). Make independent therapeutic decisions, interact with clients in therapeutic communication, produce treatment plans without the clinician's review and approval, or detect emotions or mental states.
- Penalty (Section 30). A civil penalty of up to $10,000 per violation, set by the Illinois Department of Financial and Professional Regulation after a hearing.
On-device does not mean exempt
Nothing in the Act turns on where the AI runs. Speech recognition that turns a session recording into text is AI whether it runs in a vendor's data center or on your laptop, so the written notice and consent still apply. What running on your own computer changes is what the notice has to say: no outside company receives the recording, and you decide how long it is kept.
What a written notice should state
The Act requires two things in writing: that AI will be used, and its specific purpose. A notice that answers a client's next questions will also say:
- What is recorded (audio only, or video too) and when recording starts and stops.
- The purpose, in one sentence. For example: software makes a draft transcript, and I read and correct it before anything enters your record.
- Where the recording and the text are processed and stored, and whether any outside company receives either.
- How long the recording is kept, and when it is deleted.
- That the client can say no, and can withdraw consent later, and how to do that.
Keep the signed consent with the client's record. Some other states have passed their own rules on AI in therapy; I have read only the Illinois text, so check your own state's law before relying on this list.
Cloud scribes and on-device transcription
| Question for the notice | Cloud AI scribe | Transcription on your own computer |
|---|---|---|
| Does Illinois require written notice and consent? | Yes | Yes |
| Who receives the recording? | The vendor, and any provider it uses. Read its privacy policy and business associate agreement | No one outside your practice, if the app uploads nothing |
| Who controls deletion? | The vendor's retention policy, plus your settings | You |
| Does it write the note? | Often a draft note. You must review it, and it may not detect emotions or mental states | Usually a transcript only; you write the note |
If you use Tapefolio
Tapefolio, which I make, transcribes on the Mac and sends nothing from your recordings anywhere. Recording starts only by hand, with a consent reminder each time. It is a research transcription tool, not a clinical documentation product: it does not write notes or assess clients, it makes no HIPAA claim, it transcribes English only, and it needs macOS 26 and Apple silicon. Under the Illinois Act you still need the client's written consent before using it on a session.
Frequently asked
Do Illinois therapists need client consent to transcribe sessions with AI?
Yes. Under Section 15(b) of Public Act 104-0054, a licensed professional may use AI for record keeping on a recorded or transcribed session only after telling the client in writing that AI will be used and its specific purpose, and getting the client's written consent. This is a summary of the statute as read on October 30, 2026, not legal advice.
Does on-device transcription need consent in Illinois?
The Act does not distinguish where the AI runs, so on-device transcription of a session still needs written notice and consent. Running on your own computer changes what the notice says about who receives the recording, not whether a notice is needed.
What is the penalty under the Illinois AI therapy law?
Section 30 sets a civil penalty of up to $10,000 per violation, decided by the Illinois Department of Financial and Professional Regulation after a hearing.
Related guides
- Before you paste client notes into ChatGPT: what leaves your computer when you use an AI chat app
- Can you use Otter.ai for research interviews?: what universities say about cloud transcription
- Free audio transcription on a Mac with no time limit: tools that run on the Mac