AI regulation in Nevada: What You Need to Know

AB406 Is Now Law in Nevada

The National Association of Social Workers – Nevada Chapter (NASW-NV) is proud to announce the enactment of Assembly Bill 406 (AB406)—a landmark law that makes Nevada one of the first states in the nation to draw a bold line in the sand against the misuse of artificial intelligence (AI) in mental and behavioral health care.

This is more than just a legislative win—it’s a decisive stand to protect the very foundation of therapeutic practice. As unregulated AI platforms flooded the market claiming to offer “therapy” without credentials, oversight, or accountability, the risks to public safety—and to the integrity of licensed professionals—grew dangerously high. NASW-NV recognized the threat early and led the charge to ensure Nevada would not allow technology to exploit trauma or replace human connection under the guise of innovation.

And none of this would have been possible without our members. Because social workers across Nevada contributed their time, expertise, and membership duesNASW-NV was able to organize quickly, advocate forcefully, and speak with authority on behalf of the profession. Whether it was helping draft bill language, sharing testimony/action alerts, or funding our collective legislative efforts—this victory belongs to you.

Thanks to the persistent advocacy of NASW-NV and the strength of our member-driven movement, AB406 now establishes some of the strongest consumer protections in the country—defining exactly where AI may be used and where it must never cross into the domain of professional care.

What AB406 Does: Key Takeaways for Social Workers

AB406 establishes strong protections against the unethical or unsafe use of artificial intelligence in clinical settings, ensuring that licensed professionals, not machines, deliver care.

What Is Prohibited Under AB406

1. AI Cannot Provide Therapy or Mental Health Care

“An artificial intelligence provider shall not make available for use by a person in this State an artificial intelligence system that is specifically programmed to provide a service or experience to a user that would constitute the practice of professional mental or behavioral health care if provided by a natural person.”

— Section 7(2), AB406

This includes:

  • Chatbots posing as “therapists”
  • AI apps offering diagnosis or treatment plans to clients
  • Any system marketed as a substitute for licensed providers

2. Clinical Titles Are Protected

“An artificial intelligence provider shall not make any representation… that indicates that:

(a) The AI system is capable of providing professional mental or behavioral health care;

(c) The AI system… is a provider of mental or behavioral health care, a therapist, a clinical therapist, a counselor, a psychiatrist, a doctor or any other term commonly used…”

— Section 7(1), AB406

“A natural person shall not represent himself or herself as being qualified to provide professional mental or behavioral health care… if the person does not possess a valid credential…”

— Section 7(3), AB406

Only licensed professionals may use protected clinical titles, and AI systems are categorically prohibited from impersonating them.

3. Licensed Professionals Cannot Use AI to Deliver Therapy

“A provider of mental and behavioral health care shall not use an artificial intelligence system in connection with providing professional mental and behavioral health care directly to a patient.”

— Section 8(1), AB406

Therapy, assessment, diagnosis, and other direct services must be performed by licensed humans—not delegated to technology. This does not prohibit you from utilizing AI tools to assist you in these tasks.

4. Penalties for Violations

“A person who violates any provision of subsection 1, 2 or 3 [of Section 7] is subject to a civil penalty not to exceed $15,000 per violation.”

— Section 7(5), AB406

“A provider… who violates any provision of this section is guilty of unprofessional conduct and is subject to disciplinary action by the board… by which he or she is licensed…”

— Section 8(5), AB406

What Is Allowed Under AB406

1. Administrative Use of AI Is Permitted

“A provider of mental and behavioral health care may use an artificial intelligence system to assist the provider with performing tasks for administrative support…”

— Section 8(2), AB406

Permissible administrative uses include:

  • Scheduling
  • Billing
  • Data analysis
  • Case file organization
  • Therapy Notes
  • Research or Idea Generation

“A provider shall ensure that such use complies with all applicable federal and state laws governing patient privacy…”

— Section 8(3), AB406

This includes HIPAA, HITECH, and relevant Nevada statutes (NRS 439.581–439.597).

2. Independent Review of AI-Generated Content Is Required

“A provider… shall independently review the accuracy of any report, data or other information compiled, summarized, analyzed or generated by an artificial intelligence system…”

— Section 8(4), AB406

This applies specifically to billing and session-related data like therapy notes.

3. Public School Safeguards

“A public school… shall not use artificial intelligence to perform the functions and duties of a school counselor, school psychologist or school social worker… which relate to the mental health of pupils.”

— Section 2(1), AB406

“A school… may use artificial intelligence… to perform tasks for administrative support, which may include… scheduling, managing records, analyzing data…”

— Section 2(3), AB406

The Nevada Department of Education is tasked with developing an official policy for responsible AI use in schools (Section 2(2)).

Recommendations for Practicing Social Workers

To remain in compliance and uphold best practices:

  • Update informed consent documentation to clearly explain any use of AI for administrative tasks. While the bill doesn’t expressly require informed consent, NASW-NV strongly encourages you to utilize informed consent when listening in on or creation of therapy notes.
  • Ensure that all AI-generated summaries, billing notes, therapy notes or operational data are personally reviewed for accuracy and appropriateness.
  • Do not use or endorse platforms marketed as AI therapists, AI counselors, or tools that simulate clinical relationships.
  • Engage with your employer or notes/billing system company to confirm their compliance with AB406 restrictions.
  • Report suspected violations to the appropriate licensing board or the Division of Public and Behavioral Health.

A Profession-Led Victory

AB406 was created in response to serious concerns raised by the social work community about the rapid expansion of unregulated AI “therapy” tools. NASW-NV worked with lawmakers to ensure this legislation promotes innovation while protecting the fundamental ethical commitment of the profession to human-centered care.

This law affirms that therapy is a professional relationship, not a product, and that ethical standards must evolve alongside technology.

We are especially grateful to Assemblymember Jackson (bill sponsor) and Tess Opferman of Pinyon Public Affairs (NASW-NV lobbyist) for their leadership on this issue and to NASW-NV members who shared testimony, raised alarms, and made this historic win possible.

Frequently Asked Questions: AB406 and Social Work Practice in Nevada

Q1: Can I still use AI in my practice?

Yes—but only for administrative/research purposes. This includes tasks like scheduling, billing, therapy note creation/organization, idea generation, and operational data analysis. You cannot use AI to conduct therapy, directly assess clients, or autonomously generate treatment plans.

Q2: Can I use AI to summarize my case notes?

Yes, but you must review and verify the accuracy of any summaries or content generated before using it in clinical documentation. We strongly recommend getting informed consent before utilizing these products.

Q3: What if I work at a practice that uses AI more broadly?

You are still individually responsible for complying with AB406 and your licensing board’s ethical standards. If your employer’s AI use involves direct care, you should raise the issue with compliance staff or seek legal advice.

Q4: Does AB406 apply to telehealth platforms?

Yes. AB406 applies to any AI system available for use in Nevada, including telehealth and digital mental health platforms. Tools that simulate therapeutic interaction or are marketed as “virtual therapists” are not permitted.

Q5: Can I use AI for writing progress/therapy notes?

You may use AI to assist with note formatting or drafting, but you must personally review and confirm the content’s accuracy and ensure it reflects your own professional judgment.

Q6: What titles are protected under this law?

AB406 prohibits the use of titles like “therapist,” “psychotherapist,” “counselor,” or similar terms by anyone or anything not licensed by the State of Nevada as reflected in the law.

Q7: Can I report a suspected violation?

Yes. The Division of Public and Behavioral Health has the authority to investigate violations. NASW-NV also welcomes information that helps us monitor compliance across the state.

Q8: How can I stay compliant as AI tools evolve?

Talk to your employer and/or legal representation to ensure you are following the new law. When in doubt, treat all AI-generated content as a tool—not a substitute—for your clinical expertise.

If you're a NASW-NV member and need additional clarification, please email us at admin.naswnv@socialworkers.org with a brief description of your question or concern. We’re happy to assist—and if appropriate, we’ll update this guidance on our website to help other members who may have the same inquiry.

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