This chapter examines the implications of the use of artificial intelligence (AI) in inpatient psychiatric care and highlights the health, ethical, and legal risks involved. The first part of the chapter focuses on the challenges posed by the digital transformation in medicine. It is argued that the current economic and technical framework conditions and the resulting social changes are fuelling the increased use of AI in psychiatry (Zucchetti et al., Ital J Psychiatry 10(1):17–24, 2024, https://doi.org/10.36180/2421-4469-2024-5 ). This development reflects the general societal trend in which people increasingly consume digital services and move in digital worlds, leading to a decrease in interpersonal contact. The authors discuss how large as well as emerging technology companies are using “nudging” and “data mining” to drive the merging of the real and digital worlds into a “metaverse,” which ultimately leads to a normalization of data disclosure and transforms people into a “homo vitreus digitalis”—a digitally transparent person. The second part of the chapter looks at the risks from the perspective of hospital management. Practical recommendations for action are presented, based on the experience of a senior hospital doctor. In addition to management aspects, ethical and philosophical considerations are also included in order to develop strategies for dealing with the risks arising from the use of AI in psychiatry, particularly for staff. The chapter concludes by stating that while the use of AI in medicine has the potential to improve mental health care, it requires careful consideration of the risks. The authors emphasize the need for a multidisciplinary approach to harness the benefits of AI while protecting patient privacy and autonomy.