Purpose of Review <p>This review explores the rapidly evolving integration of Generative Artificial Intelligence (GenAI) in mental health care. It aims to evaluate current applications in assessment, treatment planning, and psychotherapeutic interventions, while critically examining the clinical risks, ethical dilemmas, and the future potential of GenAI as an adjunctive tool rather than a replacement for human-delivered therapy.</p> Recent Findings <p>Recent studies indicate that AI models can effectively assist in diagnostic reasoning, biomarker identification via EEG, and the prediction of symptom trajectories from session transcripts. Randomized controlled trials (RCTs) suggest that GenAI chatbots significantly reduce anxiety and depressive symptoms in the short term, particularly in settings with limited access to clinicians. However, human-led therapy remains superior in fostering deep emotional engagement and clinical impact. Significant risks identified include the potential for GenAI to foster dependency, reinforce maladaptive schemas or delusional ideation through “sycophantic” mirroring, and raise complex ethical-legal challenges regarding the reporting of criminal disclosures.</p> Summary <p> AI represents a transformative adjunctive layer in mental health, offering scalable support for assessment, training, and between-session monitoring. While technological advances in personalization, multimodality, and immersive virtual reality enhance its clinical utility, GenAI lacks the authentic relational depth and"calibrated mismatches" essential for autonomy and transformative change. Future integration must prioritize a human-centered, blended approach, where GenAI is strictly supervised by clinicians within a robust ethical and regulatory framework to preserve the essential heart of the therapeutic connection. Research priorities, interim clinical safeguards, and recommendations for navigating the gap between current evidence and real-world adoption need to be defined and implemented.</p>