AI in Mental Health Market Growth, Innovations and Forecast 2024 - 2034

AI in Mental Health Market Size, Developments, Share and Trends

The global AI in mental health market size is calculated at US$ 1.45 in 2024, grew to US$ 1.8 billion in 2025, and is projected to reach around US$ 11.84 billion by 2034. The market is expanding at a CAGR of 24.15% between 2025 and 2034.

Key Takeaways

• North America dominated the global AI in mental health market in 2024.
• Asia Pacific is expected to be the fastest-growing during the forecast period.
• By offering type, the software segment dominated the market in 2024 and is estimated to be the fastest growing during the forecast period.
• By technology type, the natural language processing (NLP) segment dominated the market in 2024.
• By technology type, the machine learning (ML) segment is anticipated to be the fastest growing during the forecast period.
• By disorder type, the anxiety segment dominated the global AI in mental health market in 2024.
• By disorder type, the schizophrenia segment is predicted to grow significantly during the forecast period.

Market Overview

A state of mental satisfaction, due to which the people can deal with stress, work well, understand their abilities, learn well, and contribute to their community, is known as mental health. The conditions associated with mental health are psychosocial disabilities, mental disorders, impairment in functioning, significant distress, as well as risk of self-harm. Thus, in these conditions, AI plays an important role in diagnosing and understanding mental illness. For identifying a person’s predisposition to the risk of developing mental illness, risk models along with screening tools with AI techniques are developed, which help in the prediagnosis in such conditions. Thus, to implement a long-term effect in personalized mental health, computational approaches are needed.

The graph indicates the percentage of mental health services used in the years 2022-23 (specialised services) and 2023-24 (Medicare/DVA subsidised services). It indicates that a variety of mental health services are being developed to increase access for people who suffer through it silently. Thus, this encourages the development of new AI-based diagnosis and treatment approaches, which in turn will promote market growth.

Key Metrics and Overview

AI in Mental Health Market Trends

• In April 2025, Ginger and Headspace, which are digital mental health companies, will merge to develop a $3 billion giant in a category that has been rapidly growing. The Ginger's platform that offers psychiatric and therapy support, through a video-based service, will merge with Headspace's mindfulness and meditation app in this deal.
• In March 2025, to make hybrid collaborations easier, Lucid Software and Zoom are continuously contributing. For the company’s success, the physical and mental health of employees is important, as per the leaders. Thus, Unmind, which consists of an AI mental health coach, is helping the employees by making mental health more manageable and introducing them to the right therapist.

Market Dynamics

Driver

Rising Prevalence of Mental Health Illness

Due to various factors, there is a rise in the prevalence of mental health illnesses. At the same time, inadequate presence of mental healthcare professionals and lack of early diagnosis are increasing the severity of these conditions. Thus, to deal with these limitations, the use of AI in healthcare systems is increasing. Various awareness programs for early detection and severity of these conditions are also being conducted, which has contributed to the increased demand. Furthermore, the use of apps, software, etc. for the management of mental health is also rising. Thus, all these factors drive the AI in mental health market.

Restraint

Limited Human Interactions

The effective management of mental health illness can be hampered by using AI applications, as they may lack proper communication. These limited interactions cause dissatisfaction among the patients. Furthermore, the lack of background information about the patient can cause miscommunications. Thus, the empathy and moral support provided by the professionals cannot be offered by the AI technologies.

Opportunity

AI in Therapies

Various technological advancements have led to the development of new AI technologies in mental health therapies. By utilizing these applications, various personalized therapies, as well as treatments, can be made possible. At the same time, different chatbots are also being introduced, which are helping in the effective management of mental health conditions. Furthermore, various models as well as other AI applications are also being developed for conditions like anxiety and many other mental disorders, which in turn enhances the AI in mental health market growth.

For instance,

• In March 2025, Therabot, a therapy bot developed by psychologists and psychiatric researchers from Geisel School of Medicine at Dartmouth College, showed effective results in the first clinical trial in patients with anxiety, depression, or with developing eating disorders.

Segmental Insights

The Software Segment: Dominant and Fastest

By offering type, the software segment dominated the market in 2024 and is estimated to be the fastest growing during the forecast period. The software was easy to use, as well as its availability as apps on mobiles made it accessible. Furthermore, their use at any time made it more popular, which contributed to the AI in mental health market.

Natural Language Processing (NLP) Segment Dominated

By technology type, the natural language processing (NLP) segment dominated the market in 2024. The NLP offered various chatbots, which increased the human interactions, relieving mental health conditions. Furthermore, along with strict regulations, safety was also maintained, which increased its use.

Machine Learning (ML) Segment: Fastest Growing

By technology type, the machine learning (ML) segment is anticipated to be the fastest growing during the forecast period. Machine learning is helping in identifying the mental issues of the patient more effectively. At the same time, personalized therapies are also being provided by utilizing its assistance.

Anxiety Segment Led in 2024

By disorder type, the anxiety segment dominated the global AI in mental health market in 2024. Various chatbots and CBT-based model technologies were used to deal with the increasing anxiety among the patients. Furthermore, they also helped in diagnosing the anxiety patients depending on the manner of speech. Thus, it increased the market growth.

Schizophrenia Segment: Significantly Growing

By disorder type, the schizophrenia segment is predicted to grow significantly during the forecast period. Various AI tools are being developed that offer improved diagnosis and treatment strategies for schizophrenia patients. Moreover, they also provide continuous monitoring, reducing the risk of severity within patients.

Developed Healthcare Sector Drive North America

North America dominated the AI in mental health market in 2024. The healthcare sectors in North America are well-developed with specialized staff and technological advancements. Furthermore, with increasing demand for AI technologies in mental illness treatment has increased the development of new technologies along with government support, which has enhanced the market growth.

The U.S. AI in Mental Health Market Trends

The U.S. consists of an advanced healthcare system with AI technologies that help in the management of mental health. This, in turn, increases the demand for effective diagnosis and management of mental illness with AI. Moreover, the rules and regulations imposed by the government help in the safe and effective use of these AI technologies.

The Canada AI in Mental Health Market Trends

Due to a rise in the demand for the use of AI in mental health management, various companies are collaborating to develop new such strategies. Furthermore, utilizing AI apps has also enhanced the citizens’ mental health conditions, which in turn contributed to the increased use and demand for AI strategies in mental health management.

Increasing Demand Boosts the Asia Pacific

Asia Pacific is estimated to host the fastest-growing AI in mental health market during the forecast period. Asia Pacific is experiencing a rise in the demand for mental health diagnosis and treatment. Thus, this is increasing the development of new AI apps as well as approaches for effective management of mental illness. All these factors, along with the government investments, are amplifying the market.

The China AI in Mental Health Market Trends

To deal with the rising mental health conditions, various companies in China are introducing different apps for their management. At the same time, the government is also providing support by investing as well as promoting the use of AI in the healthcare sector. This, in turn, is increasing the demand for AI in mental health conditions.

The India AI in Mental Health Market Trends

Due to increasing mental health illnesses, the demand for the diagnosis and treatment of these conditions is rising. Furthermore, the new advances in AI technologies used in healthcare systems are also rising. Thus, for making such applications of AI available for every patient government is also providing its support.

Europe Driven by Rising Awareness

Europe is expected to experience significant growth in the AI in mental health market during the forecast period. There is a rise in awareness concerning mental health illnesses in Europe, which is increasing the demand for effective AI management systems. Along with these, the government and regulatory agencies are implementing strict rules and regulations on them, which is enhancing their use, along with increased safety, promoting the market growth.

The Germany AI in Mental Health Market Trends

The increasing awareness about mental health conditions, the demand for diagnosis, and personalized therapies with the help of AI technologies is rising. This, in turn, is increasing the use of AI applications in healthcare systems as well as by using apps, as these are under strict rules and regulations of the government and regulatory bodies.

The UK AI in Mental Health Market Trends

Various industries in the UK are developing new AI techniques for mental health management due to increasing demand, because of increased awareness. Thus, various apps, models for screening and treatment for different types of mental health illnesses are being developed. This, in turn, has also increased the collaborations between companies, enhancing the market.

Top Companies in the AI in Mental Health Market

• Spring Care, Inc.
• Wysa Ltd,
• Lyra Health, Inc.
• Woebot Health
• Quartet
• Meru
• Syra Health
• New Life Solution, Inc. (meQ)
• Aiberry
• Limbic
• Ellipsis Health
• Kintsugi Mindful Wellness, Inc
• NextGen Healthcare
• SilverCloud (American Well Corporation)
• Fortis Healthcare
• HEADSPACE HEALTH
• Microsoft
• Google

Latest Announcements by Industry Leaders

• In April 2025, an urgent need for an AI-based mental health solution was highlighted by the senior author and associate professor of biomedical data science and psychiatry at Dartmouth, Nicholas Jacobson. He also stated that there are not sufficient providers to meet the demand of the patients. Thus, Therabot, an AI-powered tool, can be used to minimize the waiting period for professional care and to offer scalable support, which in turn will reduce the gap between patients and professionals.
• In March 2025, to ensure high-quality psychological consultations by maintaining privacy, the Dubai Health Authority (DHA) announced new standards for teletherapy and digital health services. On this the Dr Mahesh Cirasanambati, managing director, Physical Medicine and Rehabilitation at Burjeel Holdings, stated that they believe a new era will begin, which will reduce the mental health stigma and enhance the accessibility and quality of care. He further stated that the traditional mental health services in the UAE will improve, similar to the US, UK, and Canada.

Recent Developments in AI in Mental Health Market

• In April 2025, a collaboration between CYBH and Child Mind Institute launched a journaling app that improves mental health, known as Mirror. It is considered a unique platform as many clinical professionals helped in its development. Furthermore, the people can be directed to the crisis lines by using the algorithm of the app.
• In April 2025, several sectors will have experienced transformation by utilizing AI, and mental health care is no different. To address the worldwide mental health crisis, AI therapies are emerging as novel resolutions. A path for a new era is being formed by AI systems in mental health services, which offers improved personalized treatments, minimizes the accessibility gap, and well the costs.

Segments Covered in the Report

By Offering

• Software
• Services

By Technology

• Machine Learning
• Deep learning
• Others

Natural Language Processing

• Text Analytics
• Speech Analytics
• Smart Assistance
• Others

By Disorder

• Anxiety
• Depression
• Schizophrenia
• Post-Traumatic Stress Disorder (PTSD)
• Insomnia
• Others

By Region

• North America 
  • U.S. 
  • Canada
• Asia Pacific
  • China
  • Japan
  • India 
  • South Korea
  • Thailand
• Europe 
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway
• Latin America
  • Brazil Mexico
  • Argentina
• Middle East and Africa (MEA)
  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait