The Digital Therapist: How Artificial Intelligence is Transforming and Reshaping Mental Healthcare?

Artificial intelligence (AI) is emerging as a "digital therapist", fundamentally transforming healthcare delivery by providing innovative tools for diagnosis. This topic is critical as the world faces mental health crisis with insufficient resources. AI offers scalable solutions to expand access, personalized treatment, and improve outcomes with various services. However, there is a research gap in understanding the extent of its impact and the challenges of integrating these technologies into traditional frameworks. To address the problem, our study examines how AI applications are reshaping mental healthcare, patient engagement, and overall service delivery. Using a narrative review methodology, we synthesized findings from 49 peer-reviewed studies published between 2020 and 2025 by identifying key trends and ethical considerations. We found evidence that AI-driven tools can reduce barriers and improve individualized treatment, but also noted persistent issues related to data privacy and algorithmic bias. In fact, human empathy remains irreplaceable in therapy. These findings reveal that AI’s transformative potential in mental health is substantial yet intricate. Our work contributes to the field by providing a comprehensive overview that informs clinicians, researchers, and policy-makers on leveraging AI effectively and responsibly.