Best AI Note-Taking Tools for Therapists 2026 — HIPAA-Compliant Session Notes
AI therapy note tools can cut documentation time from 30–45 minutes to under 5 minutes per session. But most therapists are using them without knowing which ones are HIPAA-compliant — and which are silent violations. The rule is simple: any AI tool that processes session audio or transcripts is handling Protected Health Information. It must sign a HIPAA BAA.
Written & fact-checked by the Therapy HIPAA Hub editorial team — see our editorial standards.
Updated August 2026 · All AI tools verified for HIPAA BAA status
Quick Answer — AI Notes + HIPAA
Yes, therapists can use AI for session notes — but only with tools that sign a HIPAA BAA.
Best for most therapists: Mentalyc ($29/mo) — built specifically for mental health providers, integrates with SimplePractice, signs BAA.
Best free option: Heidi Health — free tier available, signs BAA on all plans.
Do NOT use: Standard ChatGPT, standard Claude, standard Google Gemini, or Otter.ai — none sign HIPAA BAAs for standard accounts. Using them with session content is a HIPAA violation.
Can Therapists Legally Use AI for Session Notes?
Yes — with the right tools. Session audio, transcripts, and notes all contain Protected Health Information: they link a client's identity to their mental health treatment. Under HIPAA, any third-party service that processes PHI must sign a Business Associate Agreement before you share client data with them.
The good news: several AI note-taking tools have been built specifically for healthcare providers and do sign HIPAA BAAs. The bad news: the most popular AI tools (ChatGPT, Gemini, Claude, Otter.ai) do not — and many therapists are using them anyway.
The two-question test for any AI tool:
Does this tool sign a HIPAA Business Associate Agreement? (Ask directly or check their website under “HIPAA” or “Healthcare.”)
Is your session data used to train their AI models? (Even with a BAA, you want to ensure client data is not used for model improvement without consent.)
If the answer to #1 is no — stop. Do not use that tool for any session content.
HIPAA-Compliant AI Note Tools — Compared
| Tool | Price | BAA | Therapy-Specific | EHR Integration |
|---|---|---|---|---|
| Mentalyc | From $29/mo | ✓ Yes | ✓ Mental health only | SimplePractice, TherapyNotes |
| Freed.ai | From $99/mo | ✓ Yes | All clinicians | Copy/paste + integrations |
| Upheal | From $69/mo | ✓ Yes | ✓ Mental health only | SimplePractice |
| Heidi Health | Free / $99/mo | ✓ Yes (all plans) | All clinicians | Copy/paste + integrations |
| ChatGPT (standard) | Free–$20/mo | ✗ No BAA | General purpose | N/A — not HIPAA compliant |
| Otter.ai (standard) | Free–$16/mo | ✗ No BAA | General purpose | N/A — not HIPAA compliant |
Red rows = not HIPAA-compliant for session content. Do not use for any PHI.
Best HIPAA-Compliant AI Note Tools — Detailed Reviews
Mentalyc
Best AI notes tool built specifically for therapists · From $29/mo
Best for: Therapists who want affordable AI progress notes that integrate with their EHR
- ✓Built specifically for mental health providers
- ✓Integrates with SimplePractice and TherapyNotes
- ✓Signs HIPAA BAA
- ✓Lowest starting price of HIPAA-compliant options
- ✓Multiple note formats (DAP, SOAP, BIRP)
- ✗Newer platform — smaller community than Freed.ai
- ✗Integration depth varies by EHR
EHR integrations: SimplePractice, TherapyNotes, and more
Data training: Opt-out available
Freed.ai
Most popular AI scribe for clinicians · From $99/mo
Best for: Therapists who want the most established AI scribe with a large user community
- ✓Most widely used AI scribe in healthcare
- ✓Strong accuracy for therapy session notes
- ✓Signs HIPAA BAA
- ✓Data not used for model training
- ✓Simple audio recording workflow
- ✗Higher price point than alternatives
- ✗Built for all clinicians, not therapy-specific
EHR integrations: Copy/paste + EHR integrations
Data training: Not used for training
Upheal
Best for therapists who want notes AND session analytics · From $69/mo
Best for: Therapists who want AI notes plus insights into session patterns and treatment progress
- ✓Built exclusively for mental health providers
- ✓Session analytics and progress tracking
- ✓Signs HIPAA BAA
- ✓Multiple note template formats
- ✓Telehealth session recording supported
- ✗More expensive than Mentalyc
- ✗Analytics features may be more than solo therapists need
EHR integrations: SimplePractice integration available
Data training: HIPAA-compliant data handling
Heidi Health
Best free option with a HIPAA BAA · Free tier available / From $99/mo paid
Best for: Therapists who want to test AI notes before committing to a paid plan
- ✓Free tier available for limited sessions/month
- ✓Signs HIPAA BAA on all plans including free
- ✓Fast transcription and note generation
- ✓Clean, easy-to-use interface
- ✗Free tier has session limits
- ✗Primarily a medical scribe — not therapy-specific
EHR integrations: Copy/paste + direct EHR integrations
Data training: Not used for training
AI Tools You Cannot Use for Session Notes — and Why
These tools are widely used by therapists — and are HIPAA violations when used with session content. The issue is not encryption or security. The issue is that none of them sign a HIPAA Business Associate Agreement for standard accounts.
Standard ChatGPT (OpenAI)
OpenAI does not sign HIPAA BAAs for ChatGPT Plus or free plans. The OpenAI API can be used with a BAA through a Business Associate Agreement at the enterprise level, but standard ChatGPT accounts have no BAA. Pasting session notes into standard ChatGPT is a HIPAA violation.
Claude (Anthropic) — standard plan
Anthropic does not sign HIPAA BAAs for standard claude.ai accounts. Enterprise-level API agreements may include a BAA, but for individual therapists using the standard interface, no BAA is available.
Google Gemini — standard account
Standard Google accounts (including Gemini free and paid) do not include a HIPAA BAA. Google Workspace Business with a signed BAA can enable some compliant use, but standard Gemini is not appropriate for PHI.
Otter.ai — standard plan
Otter.ai does not sign HIPAA BAAs on standard or Pro plans. Some enterprise agreements may include a BAA — check with Otter directly before using for any session recording or transcription containing PHI.
Already Use SimplePractice? Check Their AI Features First
SimplePractice has been adding AI-assisted documentation features. If you are already a SimplePractice subscriber, any AI features within the platform are automatically covered under your existing BAA — no separate agreement needed. Check your SimplePractice account under Settings → Documentation before subscribing to a separate AI tool.
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SimplePractice is the #1 HIPAA-compliant practice management platform for therapists. Includes a signed BAA, encrypted messaging, telehealth, and full insurance billing.
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Before Using Any AI Note Tool — 5 Things to Verify
BAA availability
Ask the company directly: 'Do you sign a HIPAA Business Associate Agreement?' Get it in writing — a verbal assurance is not sufficient. Most HIPAA-compliant tools have a BAA in their settings or onboarding flow.
Data retention policy
How long does the tool store your session audio and transcripts? Some tools delete audio immediately after transcription. Others retain it for 30, 60, or 90 days. Know what you are agreeing to.
Training data opt-out
Does the tool use your session data to improve their AI models? Most reputable healthcare AI tools offer an opt-out or explicitly state they do not train on client data. Verify before signing up.
Encryption in transit and at rest
Session audio and transcripts should be encrypted while being transmitted to the AI and while stored on the company's servers. Look for AES-256 encryption at rest and TLS 1.2+ in transit.
Who can access your data
Does anyone at the company have access to your session transcripts? What is their employee access policy? HIPAA requires minimum necessary access — even internally.
FAQ — AI Note-Taking for Therapists
Can therapists use AI to write session notes?
Yes — therapists can use AI for session notes as long as the tool signs a HIPAA Business Associate Agreement. Tools like Mentalyc, Freed.ai, Upheal, and Heidi Health are HIPAA-compliant and built for this purpose. Using a general AI tool like ChatGPT or Google Gemini for session notes is a HIPAA violation unless you have a signed BAA.
Is ChatGPT HIPAA-compliant for therapists?
No — standard ChatGPT (free and Plus plans) is not HIPAA-compliant. OpenAI does not sign HIPAA BAAs for standard consumer accounts. Pasting session notes, client names, diagnoses, or any PHI into ChatGPT is a HIPAA violation. The OpenAI API with a signed Business Associate Agreement can be used compliantly, but this requires enterprise-level arrangements beyond what individual therapists typically have.
What is the cheapest HIPAA-compliant AI note tool for therapists?
Mentalyc starts at approximately $29/month and is the most affordable HIPAA-compliant AI note tool built specifically for therapists. Heidi Health also offers a free tier (limited sessions per month) with a HIPAA BAA included on all plans, including free.
Does AI session note software need a BAA?
Yes — any software that processes Protected Health Information, including session audio recordings and transcripts, must sign a HIPAA Business Associate Agreement. Session audio is PHI because it links a client's identity with their mental health treatment. There is no exception for AI tools.
Can I use Otter.ai for therapy session transcription?
No — standard Otter.ai plans do not include a HIPAA BAA. Otter.ai is a general transcription tool not designed for healthcare use. Using Otter.ai to record or transcribe therapy sessions is a HIPAA violation. Use a therapy-specific AI tool like Mentalyc or Upheal instead.
Is it ethical to use AI to write therapy notes?
Most professional bodies (APA, NASW, ACA) consider AI-assisted documentation acceptable with appropriate disclosure. The consensus emerging in 2026 is: AI can assist in drafting notes, but the clinician must review, edit, and take clinical responsibility for every note before signing. Best practice is to disclose AI assistance in your informed consent document and always verify the AI output reflects what actually happened in the session.
Does SimplePractice have AI note-taking features?
SimplePractice has been adding AI documentation features to its platform. Any AI features within SimplePractice are covered under your existing BAA — no separate agreement is needed. Check your SimplePractice Settings → Documentation for the most current AI features available to your plan.
What is the difference between AI note-taking tools built for therapists vs. general AI scribes?
Therapy-specific tools (Mentalyc, Upheal) understand mental health terminology, note formats (DAP, SOAP, BIRP), diagnoses, and session structure. They generate notes in the formats therapists use. General medical scribes (Freed.ai, Heidi Health) work for any clinician — accurate and HIPAA-compliant, but may require more editing for therapy-specific language and structure.