Introduction: The Fragmented AI Regulatory Landscape # The United States has no single AI regulatory agency. Instead, AI oversight is fragmented across dozens of federal agencies, each applying its existing statutory authority to AI systems within its jurisdiction. The Federal Trade Commission addresses AI in consumer protection and competition. The Food and Drug Administration regulates AI medical devices. The Equal Employment Opportunity Commission enforces civil rights laws against discriminatory AI. The Consumer Financial Protection Bureau oversees AI in financial services.
AI Therapy Apps: A $2 Billion Industry Without a License # AI mental health apps have become a multi-billion dollar industry serving millions of users seeking affordable, accessible psychological support. Apps like Woebot, Wysa, Youper, and others promise “AI therapy” using cognitive behavioral therapy techniques, mood tracking, and conversational interfaces. The market is projected to reach $7.5-7.9 billion by 2034, with North America commanding 57% market share.
AI Companions: From Emotional Support to Legal Reckoning # AI companion chatbots, designed for emotional connection, romantic relationships, and mental health support, have become a distinct category of liability concern separate from customer service chatbots. These applications are marketed to lonely, depressed, and vulnerable users seeking human-like connection. When those users include children and teenagers struggling with mental health, the stakes become deadly.