AI Mental Health Tools: Investment Boom and Potential Solutions to Care Shortage

AI Mental Health Tools Spark Investment Boom | PYMNTS.com

Investors are pouring money into startups developing artificial intelligence (AI) for mental health care, betting on technology to boost efficiency and profits in the rapidly growing sector. Yung Sidekick, a Miami-based company creating an AI platform for mental health professionals, recently secured $825,000 in pre-seed funding. The deal exemplifies a larger trend of health tech firms leveraging AI to streamline operations, potentially reduce costs, and scale services in an industry struggling to meet surging demand. "One of the biggest innovations driving the growth of AI mental health software is the advancement in voice technology," Kathleen Perley, GenAI professor at the Jones Graduate School of Business (Rice Business) at Rice University, told PYMNTS. "Not only do these AI systems sound more human, but they are also becoming better at having natural conversations -- asking questions, listening and responding effectively." This focus on automation addresses a big issue in the field. According to the American Psychological Association, 45% of psychologists report burnout, with administrative tasks contributing significantly to their workload. By streamlining these processes, Yung Sidekick and similar AI tools could alleviate therapist burnout and improve patient care. "Our goal is to empower mental health professionals by cutting down on paperwork, allowing them to spend more time with their patients," said Yung Sidekick Co-Founder Stanley Efrem in a news release. The platform uses AI to automate administrative tasks, including generating electronic health record (EHR) progress notes in just two minutes. Recent technological improvements allow AI to provide more nuanced and effective responses. Perley said, "Tools like Hume AI take a scientific approach to analyzing speech to understand emotions and incorporate a multimodal approach, which includes body language analysis. This means that AI can interpret not only what a person says but also vocal cues and physical gestures tied to their emotions or current experience." The pandemic has also played a role in accelerating the adoption of AI in mental health care. Perley pointed out, "Another major driver is the extension of legislation after COVID-19, which allows mental health providers to treat patients virtually, sometimes even across state lines. This has made mental health services more accessible, driving the growth of AI-powered mental health tools." Yung Sidekick's platform capitalizes on these advancements. It captures session audio, automatically generates a transcript, and uses AI to extract key details, including symptoms, medications and treatment goals. The startup is also rolling out an AI assistant feature designed to support therapists with instant access to session-specific details and client history. The investment boom in AI mental health tools comes at a time of increasing need. "We're seeing an increase in anxiety levels, with a recent study finding that 43% of adults feel anxious today. Globally, 1 in 8 adults is living with a mental health condition," Perley said. However, she argued that the surge in investment isn't solely due to increased mental health issues: "There is greater awareness and acceptance of mental health concerns. AI provides a unique opportunity to create spaces where people can feel psychologically safe, allowing them to be vulnerable without fear of judgment." The AI-powered mental health solutions field is rapidly expanding, with startups tackling various aspects of care delivery and support. O7 Therapy from Egypt is developing an AI-driven platform that matches patients with the most suitable therapists based on their specific needs and preferences. This approach aims to improve treatment outcomes by ensuring a good fit between patient and provider. France's Callyope is building speech-based foundational models to analyze patient behaviors and monitor symptoms across various mental health conditions. By providing clinicians with insights on treatment efficacy or potential relapse, Callyope aims to enhance the precision of mental health care. HearMe, a Polish startup, uses AI-powered chatbots to provide immediate support and resources to individuals experiencing mental health distress. By offering 24/7 availability and personalized guidance, HearMe aims to reduce barriers to accessing help and improve early intervention. Thalia Psychotherapy from Kenya is developing AI-powered tools to assist therapists in analyzing patient conversations and identifying potential mental health concerns. This technology helps therapists provide more personalized and data-driven care. Despite the enthusiasm for AI in mental health care, experts caution against viewing it as a replacement for human therapists. "It's important to view AI in mental health as an augmentation or support mechanism rather than a replacement," Perley said. "Leveraging AI to create personalized treatment plans, for instance, based on cognitive behavioral therapy (CBT), has been shown to improve adherence rates by up to 60%." Yung Sidekick's approach aligns with this perspective. The platform is designed to supplement in-person therapy by providing detailed session reports, offering insights for therapists and patients, helping track therapeutic progress, and identifying patterns over time. "We're also working toward a provider-patient platform that integrates patient-focused features, such as AI-driven client chat, to enhance the therapy experience for everyone involved," said Michael Reider, CEO and Co-Founder of Yung Sidekick. As the field evolves, startups like Yung Sidekick focus on building trust and maintaining the human element in therapy. Perley, who advises a mental health AI startup, stressed the importance of this approach: "This startup is focusing first and foremost on creating a community and personal connection before bringing in AI. They are listening to their target audience and prioritizing the challenges that need to be solved."

A.I. May Offer a Solution to America's Gaping Mental Health Care Shortage

But can A.I. truly replicate the empathy and trust that human therapists provide? The U.S. is grappling with a significant shortage of mental health professionals. According to a recent survey by HRSA, over 60 percent of therapists cannot accept new patients due to high demand. As a result, one in three individuals today are left waiting for months before accessing care, with low-income areas and communities of color being the most affected. Moreover, challenges including high costs of therapy, limited availability and social stigma toward mental health care compound these issues. Sign Up For Our Daily Newsletter Sign Up Thank you for signing up! By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. See all of our newsletters Aiming to fill some of the shortcomings in the space, A.I. mental health care companies are cropping up, claiming to make mental health care better and more accessible. The New York-based mental health chatbot Slingshot AI recently raised $30 million from Andreessen Horowitz, and A.I.-powered Spring Health raised a $100 million Series E in July, signaling Silicon Valley's excitement for the technology's potential in the mental health space. The A.I. mental health market is expected to reach $12.67 billion by 2031, according to a recent report by Netscribes. One of the big questions surrounding the use of A.I. in mental health care is whether it can truly replicate the empathy and trust that human therapists provide. While the technology can offer consistency in care and eliminate biases affecting human therapists, it still lacks the genuine emotional connection that many patients find important, especially in therapy. However, A.I.-generated communications "demonstrated superior discipline in offering emotional support" to recipients compared to untrained human interactions, according to a new study published in the Proceedings of the National Academy of Sciences (PNAS). The study also suggests that A.I. has the potential to offer a sense of acknowledgment and understanding through sophisticated algorithms and natural language processing. In another study by researchers at Columbia University published last month, nearly half of patients surveyed said they "believed A.I. may be beneficial for mental health care." However, participants noted concerns over potential for misdiagnosis, patient data security, as well as "loss of connection with their health professional." A.I. is "better than no one at all." Citing the current state of health care in the U.S., some experts argue that having A.I. attending patients' mental health care needs is better than having no one at all. "In the Bay Area, it takes months just to schedule a first therapist appointment. Visibility to such bottlenecks is essential to enhance triage processes and get individuals to the correct level of care," Grace Chang, the founder and CEO of Kintsugi, told Observer. Her company develops voice biomarker A.I. technology to detect signs of depression and anxiety from short clips of speech in real time. She said technology is a powerful tool for providing care to underserved populations. "Since A.I. can be deployed on a large scale at a lower cost, it has the potential to reach millions of people simultaneously, addressing the demand and supply issues in mental health care." A.I.'s role in mental health care goes far beyond improving therapeutic accessibility. Social stigma is often a major to mental health care, discouraging individuals from seeking help. By analyzing speech patterns, genetic information and lifestyle choices, A.I. models can tailor treatments to the specific needs of individuals, enabling privacy in the comfort of their homes. For example, A.I. models can predict suicide attempts up to a week in advance with 92 percent accuracy, due to the technology's ability to detect nuanced patterns in speech and behavior, according to a study by NCIB. These approaches could in-turn enhance therapists' effectiveness while minimizing the trial-and-error processes often associated with mental health treatment. "When mental health issues are discussed in a medical environment with a few additional, non-stigmatizing questions, it opens up opportunities for individuals to receive the appropriate level of care," Chang said. But of course, not all patients fully communicate their feelings all the time. Grace added that deep learning models that can analyze speech patterns for signs of depression within seconds can help nurses and practitioners treat patients during telehealth sessions, even in the face of stigma. Ultimately, the success of A.I. in mental health care may hinge on its ability to integrate into existing health care systems, maintain ethical standards, and continually improve its empathy and understanding capabilities. While it may not replace the empathetic understanding of human therapists, the technology has the potential to play a pivotal role in enabling more individuals to receive the required care.