AI chatbots offering mental health therapy are under scrutiny for potentially causing harm to vulnerable users. The American Psychological Association (APA) has highlighted cases involving Character.AI, where a 14-year-old in Florida died by suicide and a 17-year-old in Texas became violent after using chatbots claiming to be therapists. The APA has urged the Federal Trade Commission (FTC) to regulate these technologies, citing their inability to challenge harmful beliefs and the risk of misleading users. Experts warn that AI lacks the empathy, intuition, and contextual understanding crucial for effective therapy. Chatbots may misinterpret emotions, fail to recognize crises, and provide inappropriate advice, exacerbating mental health issues. While tools like Crisis-Message Detector 1 show potential for supporting human therapists, critics stress that AI should not replace professional care. At the DNPA Conclave 2025, HT Digital CEO Puneet Jain advocated for mandatory disclaimers on fully AI-generated content to prevent manipulation and ensure transparency. He also called for labeling credible news sources and fostering collaboration among policymakers, content creators, and platforms to address AI-related challenges.