Tennessee Health Care AI Accountability Act (SB 1580): AI Compliance Requirements
Tennessee SB 1580, signed by Governor Bill Lee on April 1, 2026, prohibits AI systems from advertising or representing themselves as licensed mental health professionals. Effective July 1, 2026. Any AI chatbot, virtual therapist, or wellness app that interacts with users on mental health topics must clearly identify itself as AI and not claim licensure. Enforced under the Tennessee Consumer Protection Act with a private right of action. Businesses using AI for mental health support, employee wellness programs, or behavioral health coaching must audit their AI systems immediately.
Key Facts
July 1, 2026
$5,000 per violation under Tennessee Consumer Protection Act; private right of action; attorney fees available
What Your Business Must Do
2 compliance requirements identified. Critical requirements carry the highest risk of enforcement action.
Mental Health AI Identity Disclosure
CriticalAny AI system used for mental health support, wellness coaching, or behavioral health applications must clearly and prominently disclose that it is an artificial intelligence system and not a licensed mental health professional. The disclosure must appear before or at the start of every therapeutic conversation. Review all employee wellness programs, HR chatbots, and customer-facing health tools for compliance.
Deadline: July 1, 2026
AI Mental Health Tool Audit
High PriorityConduct an inventory of all AI tools that interact with employees or customers about mental health, stress, anxiety, depression, or behavioral health. For each tool: verify it does not claim or imply it is a licensed therapist, psychologist, or counselor. Update disclosures and terms of service to explicitly state the AI nature of the service.
Deadline: July 1, 2026
Frequently Asked Questions
Does Tennessee Health Care AI Accountability Act (SB 1580) apply to my business?
Tennessee SB 1580, signed by Governor Bill Lee on April 1, 2026, prohibits AI systems from advertising or representing themselves as licensed mental health professionals. Effective July 1, 2026. Any AI chatbot, virtual therapist, or wellness app that. Use ComplianceIQ's free scanner to get a personalized assessment in under 5 minutes.
What is the penalty for non-compliance?
The maximum penalty under Tennessee Health Care AI Accountability Act (SB 1580) is: $5,000 per violation under Tennessee Consumer Protection Act; private right of action; attorney fees available. Fines are typically scaled by company size, severity of violation, and whether violations were willful or accidental.
How do I comply with Tennessee Health Care AI Accountability Act (SB 1580)?
The 2 requirements above cover the core obligations. The fastest path to compliance is: (1) conduct an AI risk assessment, (2) document your AI systems, (3) implement transparency disclosures where required. ComplianceIQ generates all required documents automatically.
Official Source
https://www.troutmanprivacy.com/2026/04/tennessee-enacts-health-care-ai-bill-with-private-right-of-action/Last updated: 2026-04-12 — verify at source before relying on this information.
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