The bill S. 788 aims to regulate the use of artificial intelligence (AI) in therapy and psychotherapy services in South Carolina by adding Article 5 to Chapter 1, Title 40 of the South Carolina Code of Laws. It establishes definitions related to AI and therapy, stipulating that licensed professionals may not use AI to assist in therapy sessions unless the client is informed and consents to its use. The bill also prohibits individuals or entities from offering therapy services through AI unless conducted by a licensed professional, and it restricts AI from making independent therapeutic decisions or directly interacting with clients in therapeutic communication.

Additionally, the bill mandates that all records maintained by licensed professionals remain confidential, with specific exceptions outlined. It imposes civil penalties for violations, which can reach up to $10,000, and grants licensing boards the authority to investigate any suspected breaches of the regulations. The provisions of this article do not apply to religious counseling, peer support, or self-help materials that do not claim to provide therapy services. The act will take effect upon approval by the Governor.