Source: Axios

Axios reports that state legislatures are increasingly taking the lead in regulating the use of artificial intelligence in healthcare, passing laws to fill the gap left by the absence of comprehensive federal legislation. In 2025 alone, 47 states introduced over 250 AI bills impacting healthcare, with significant new laws enacted in Illinois, Utah, Nevada, and New York. These regulations focus primarily on the use of AI-enabled chatbots in mental health services and clinical care oversight. For instance, Illinois' "Wellness and Oversight for Psychological Resources (WOPR) Act" explicitly bans AI systems from independently delivering mental health treatment or making clinical decisions without professional supervision.

The report notes a potential conflict between these state-level protections and President Trump's recent executive order, which seeks to preempt state AI regulations to foster a unified national market. While the executive order contains exemptions for "child safety," it is unclear if state laws strictly regulating medical AI tools for adults will be challenged by the new federal AI Litigation Task Force. States like Nevada and Oregon have also passed laws requiring transparency when patients interact with AI, ensuring that automated systems are not mistaken for human providers. This trend underscores a growing divergence between state efforts to protect patient safety and federal moves to deregulate the technology sector.