Investors are pouring money into startups developing artificial intelligence (AI) for mental health, betting on technology to boost efficiency and profits in the fast-growing sector.
Yung Sidekicka Miami-based company creating an AI platform for mental health professionals recently secured $825,000 in pre-seed funding. The deal is an example of a larger trend in which healthcare companies are using AI to streamline operations, potentially reduce costs and scale services in an industry struggling to meet rising demand.
“One of the biggest innovations driving the growth of AI software for mental health is the advancement in voice technology,” Kathleen PerleyGenAI professor at the Jones Graduate School of Business (Rice Business) at Rice University told PYMNTS. “These AI systems not only sound more human, but they are also getting better at having natural conversations – asking questions, listening and responding effectively.”
This focus on automation addresses a major problem in the field. According to the American Psychological Association, 45% of cases are psychologists report burnoutwhere administrative tasks contribute significantly to their workload. By streamlining these processes, Yung Sidekick and similar AI tools can alleviate therapist burnout and improve patient care.
“Our goal is to empower mental health professionals by reducing paperwork, allowing them to spend more time with their patients,” said Stanley Efrem, co-founder of Yung Sidekick in a press release. The platform uses AI to automate administrative tasks, including generating progress notes in electronic health records (EHR) in just two minutes.
Mental health care with AI
Recent technological improvements ensure that AI can respond more nuanced and effective. Perley said: “Tools like Hume AI take a scientific approach to analyzing speech to understand emotions and include a multi-modal approach including body language analysis. This means that AI can interpret not only what a person says, but also vocal signals and physical gestures related to their emotions or current experiences.”
The pandemic has also played a role in accelerating the adoption of AI in mental health care. Perley noted, “Another key driver is the expansion of legislation post-COVID-19, allowing mental health providers to treat patients virtually, sometimes even across state lines. This has made mental health care more accessible, fueling the growth of AI-powered mental health tools.”
Yung Sidekick’s platform responds to these developments. 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 introducing an AI assistant feature designed to support therapists with instant access to session-specific details and client history.
Tackling the mental health crisis
The investment boom in AI tools for mental health comes at a time of increasing need. “We are seeing an increase in anxiety levels, with a recent survey showing that 43% of adults are feeling anxious these days. Globally, 1 in 8 adults lives with a mental illness,” said Perley.
However, she argued that the increase in investment is not just due to increased mental health problems: “There is greater awareness and acceptance of mental health problems. AI offers a unique opportunity to create spaces where people can feel psychologically safe, allowing them to be vulnerable without fear of judgement.”
Diverse approaches in AI mental health
The field of AI-powered mental health solutions is expanding rapidly, with startups that tackle different aspects of care 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 results by ensuring a good match between patient and healthcare provider.
The French Callyope is building speech-based fundamental models to analyze patient behavior and monitor symptoms in various mental health conditions. By giving doctors insight into the efficacy of treatment or possible relapse, Callyope aims to improve 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 issues. By offering 24/7 availability and personalized guidance, HearMe aims to reduce barriers to accessing help and improve early intervention.
Thalia Psychotherapy from Kenya develops AI-powered tools to help therapists analyze patient conversations and identify potential mental health issues. This technology helps therapists provide more personalized and data-driven care.
Balancing AI and human touch
Despite the enthusiasm for AI in mental health, experts caution against seeing it as a replacement for human therapists. “It is important to view AI in mental health as a complement or support mechanism rather than a replacement,” says Perley. “Using AI to create personalized treatment plans, for example based on cognitive behavioral therapy (CBT), has been shown to improve treatment compliance by up to 60%.”
Yung Sidekick’s approach is in line with this perspective. The platform is designed to complement in-person therapy by providing detailed session reports, providing insights for therapists and patients, helping track therapeutic progress and identifying patterns over time.
“We are also working on a provider-patient platform that integrates patient-facing features, such as AI-powered client chat, to improve the therapy experience for everyone involved,” said Michael Reider, CEO and co-founder of Yung Sidekick.
As the field evolves, startups like Yung Sidekick are focusing on building trust and maintaining the human element in therapy. Perley, who advises an AI startup in the mental health field, emphasized the importance of this approach: “This startup focuses first and foremost on creating community and personal connection before introducing AI. They listen to their target group and prioritize the challenges that come with it need be resolved.”
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