Investors are increasingly backing startups that are using artificial intelligence (AI) to revolutionize mental health care, anticipating that the technology will enhance efficiency and profitability in the rapidly expanding sector.
One recent example is Miami-based Yung Sidekick, which secured $825,000 in pre-seed funding to further develop its AI platform for mental health professionals. This investment highlights a broader trend in the health tech sector, where AI is being used to streamline operations, cut costs, and scale services—especially in an industry grappling with rising demand for mental health care.
One of the biggest challenges in mental health care is the heavy administrative workload faced by professionals. The American Psychological Association reports that 45% of psychologists experience burnout, much of which is due to non-clinical tasks. Startups like Yung Sidekick aim to alleviate this burden by automating administrative processes, such as generating progress notes for electronic health records (EHRs) in just two minutes.
“Our mission is to empower mental health professionals by reducing their paperwork so they can focus more on patient care,” said Stanley Efrem, Co-Founder of Yung Sidekick, in a news release.
AI Revolutionizing Mental Health Care
Recent advancements in AI have made these tools more responsive and effective in delivering mental health care. For instance, Perley noted that platforms like Hume AI use scientific methods to analyze speech and interpret emotions through voice and body language. “This multimodal approach enables AI to grasp not only what a person says but also their emotional state through vocal cues and physical gestures,” she explained.
The COVID-19 pandemic has further accelerated the adoption of AI in mental health care. With legislation now allowing mental health providers to offer virtual care across state lines, AI-powered tools have played a crucial role in expanding access to mental health services. As a result, Yung Sidekick has designed its platform to capture session audio, create transcripts, and extract key details such as symptoms and treatment goals.
The startup is also rolling out an AI assistant that offers mental health professionals instant access to client histories and session-specific details, enhancing the therapist’s ability to provide tailored care.
Addressing the Mental Health Crisis
The surge in investment in AI mental health tools coincides with a global mental health crisis. According to Perley, anxiety levels are on the rise, with 43% of adults in a recent study reporting feelings of anxiety. Globally, one in eight adults is living with a mental health condition.
However, the increase in funding is not only in response to growing mental health challenges but also due to the growing awareness and acceptance of mental health issues. “AI offers a unique opportunity to create safe spaces where individuals can feel comfortable being vulnerable without the fear of judgment,” Perley said.
Diverse Approaches in AI-Powered Mental Health Solutions
The AI mental health sector is expanding rapidly, with startups tackling various aspects of care delivery. For example, Egypt-based O7 Therapy is developing an AI-driven platform to match patients with therapists based on their specific needs, enhancing the likelihood of successful treatment.
Meanwhile, France’s Callyope is working on speech-based models to monitor mental health conditions, providing clinicians with insights into patient behavior and treatment efficacy. In Poland, HearMe uses AI-powered chatbots to offer immediate support to those in mental health distress, aiming to break down barriers to accessing care.
In Kenya, Thalia Psychotherapy is developing AI tools that help therapists analyze conversations to detect potential mental health concerns, enabling them to offer more personalized care.
Balancing AI and Human Interaction
While AI offers numerous benefits in mental health care, experts caution against viewing it as a replacement for human therapists. “AI should be seen as a tool that augments and supports therapy, not replaces it,” Perley said. For example, AI can be used to develop personalized treatment plans, such as those based on cognitive behavioral therapy (CBT), which have been shown to improve adherence rates by up to 60%.
Yung Sidekick’s platform follows this philosophy, serving as a complement to in-person therapy. By generating detailed session reports and tracking progress over time, the platform offers valuable insights for both therapists and patients.
“We are also working on a provider-patient platform that will incorporate AI-driven features, such as client chat, to enhance the therapy experience for everyone,” said Michael Reider, CEO and Co-Founder of Yung Sidekick.
As the field evolves, companies like Yung Sidekick are focusing on maintaining trust and the human element in therapy. Perley emphasized that building a community and establishing personal connections should remain a priority before introducing AI into mental health care.
By combining technological innovation with human-centered care, AI-driven mental health tools are poised to play an increasingly critical role in addressing the mental health crisis, offering scalable solutions that enhance both accessibility and effectiveness in care delivery.
