Artificial intelligence is changing the way we work—and now, it’s changing how we care. In recent years, AI-driven mental health tools have entered the wellbeing space with growing momentum. From mood-sensing algorithms to chatbot therapists, some organisations are exploring how technology might offer scalable support for their people.
But when it comes to emotional health, nuance matters. Empathy matters. Trust matters.
So while AI might be part of the future of workplace wellbeing, it shouldn’t replace what makes mental health care most effective: human connection.
What AI Looks Like in Mental Health Today
AI is already being used in mental health and workplace wellness in a number of ways:
- Chatbots that simulate therapeutic conversations (e.g. Wysa, Woebot)
- Sentiment analysis that monitors tone in emails, surveys or voice notes
- Predictive analytics that flag users at risk based on patterns of behaviour
- AI writing tools to summarise clinical notes or generate wellbeing content
- Digital triage systems that help route employees to the right support
A recent article from the Black Dog Institute highlighted both the potential and limitations of chatbot therapy. While helpful for some low-risk users, these tools lack the emotional depth and adaptability needed for complex, trauma-informed care.
The Promise: Why AI Is Gaining Traction
There’s no doubt that AI can assist in the mental health space:
- Scale & Access: AI can deliver basic psychoeducation or coping prompts 24/7, reaching people who might not otherwise seek help.
- On-Demand Support: Employees can engage with tools at their own pace, outside of office hours or clinician availability.
- Cost Efficiency: Some systems reduce administrative time or overheads.
- Personalisation: Algorithms can tailor content or interventions based on user data.
- Assistance, Not Replacement: Used wisely, AI can augment human support—flagging concerns early or reducing cognitive load for professionals.
The Pitfalls: What Leaders Must Consider
Despite its potential, AI raises serious ethical and practical concerns:
- Privacy and Consent: Employees must know when they’re interacting with AI—and how their data is used. Mental health data is deeply personal, and transparency is critical.
- Bias and Misinterpretation: AI tools are only as good as the data they’re trained on. Bias can creep in easily, particularly across cultural or neurodivergent communication styles.
- Lack of Human Nuance: AI cannot recognise body language, complex trauma cues, or relational dynamics. This can result in inappropriate or even harmful responses.
- False Safety: Over-reliance on AI tools may lead leaders to believe that support needs are being met—when in fact, distress is going undetected or poorly managed.
Policies & Guidelines on AI in Mental Health
The conversation around ethics and safety is growing. Several peak bodies are developing or publishing guidance:
- AHPRA & National Boards have affirmed that all AI use must meet existing professional standards.
- PACFA released Good Practice Guidelines on Integrating AI, noting the importance of supervision, accountability and consent.
- The Department of Health and Aged Care has undertaken a public consultation on safe and responsible AI.
- The AI Now Institute has explored risks including surveillance creep, commercial exploitation, and loss of human agency in care.
What Makes Acorn EAP Different
At Acorn, we don’t offer AI-driven counselling. Our model is built on human-first, trauma-informed care—with flexibility to use assistive tools, not replacements.
We believe:
- A chatbot can supplement but never replace a skilled clinician.
- Confidentiality and consent are non-negotiable.
- Technology should support real relationships, not simulate them.
- Small organisations deserve the same care and ethical standards as large ones.
We may use smart systems to help manage bookings, reminders or insights—but your people will never be directed to an automated therapy bot when what they need is a safe, skilled human conversation.
Questions for Leaders to Ask
If your organisation is considering an AI-based mental health tool, start here:
- Is it transparent? Do staff know when they’re interacting with AI?
- Is there human escalation available?
- How is data protected, stored and used?
- What training or cultural safety frameworks are in place?
- Is it clinically supervised by qualified practitioners?
Final Thoughts
AI can play a valuable role in mental health—but only when used ethically, cautiously, and in partnership with trained professionals.
The risk isn’t that AI is too powerful—it’s that we’ll expect too much from it, too soon.
At Acorn EAP, we remain committed to real conversations that change lives. We support people—not platforms—and we believe in slowing down, listening deeply, and showing up human.
Because that’s what real care looks like.
