As the integration of AI and extensive healthcare datasets is at the cusp of revolutionizing the field of mental health care, it comes with its own challenges, apprehensions and speculations. In previous chapters, we have discussed in general about the implications of AI-based applications in different mental health conditions. In this chapter, we discuss how the intricate processes of psychodiagnostics and psychotherapy could be assisted with AI, and how to overcome the challenges in utilizing AI in mental health. This comprehensive elaboration will explore the multifaceted ways in which AI can assist in the intervention and treatment of mental health disorders, focusing on its capabilities in prediction, detection, and treatment, as well as the ethical and practical implications of these technologies. We also give an insight into the process of developing chatbots in mental health and the challenges.