2026-07-30 · Source: Insurance Journal
Summary in 3 Points • Nearly 6 in 10 New Jersey adults support regulating AI chatbots for mental health advice, according to a Rutgers study • The study highlights inappropriate responses from AI chatbots like ChatGPT in mental health crises, citing real harm • Over 400 bills on health-related AI use have been introduced in the US since 2025, but New Jersey lacks regulations --- A recent study by the **Eagleton Center for Public Interest Polling** at Rutgers University reveals that nearly 60% of New Jersey adults support regulating how **artificial intelligence** (AI) chatbots interact with users seeking mental health advice. The research, published in Health Affairs Scholar, involved a survey of 1,568 adults and found a significant concern over the potential harm caused by AI chatbots like **ChatGPT**. The study cited incidents where inappropriate responses from these chatbots were linked to the suicides of individuals in mental health crises. Despite the introduction of over 400 bills addressing health-related AI use across the United States since 2025, New Jersey has yet to implement specific regulations. For the **London Insurance Market**, the push for AI regulation in mental health contexts directly impacts **cyber liability** and **professional indemnity** lines, where insurers might face claims related to chatbot malfunctions. The involvement of **Lloyd's** and the growing public support for regulation signal potential shifts in liability exposures that could affect underwriting strategies. As AI tools like **generative AI** chatbots become more integrated into healthcare, London Market insurers must consider how these technologies might alter risk profiles and influence policy wordings, especially in sectors involving mental health services. **Underwriters** and **brokers** should closely monitor developments in AI regulation, particularly in jurisdictions like New Jersey, where public sentiment is driving legislative action. Ensuring that policy terms adequately address the risks associated with AI chatbots in mental health applications is crucial. **Risk managers** should evaluate the potential for increased claims activity related to AI errors and consider how these emerging risks might necessitate adjustments in coverage offerings or premium pricing.
For the London Insurance Market, the push for AI regulation in mental health contexts directly impacts cyber liability and professional indemnity lines, where insurers might face claims related to chatbot malfunctions. The involvement of Lloyd's and the growing public support for regulation signal potential shifts in liability exposures that could affect underwriting strategies. As AI tools like generative AI chatbots become more integrated into healthcare, London Market insurers must consider how these technologies might alter risk profiles and influence policy wordings, especially in sectors involving mental health services.