The best AI for therapy notes depends on your workflow. Dedicated AI scribes transcribe and summarise sessions, therapy-specific note generators structure clinical formats like SOAP or DAP, and AI-native practice management software builds documentation into scheduling and records. For Australian practices, prioritise privacy, local data handling and clinician oversight over raw speed.
Why are therapists turning to AI for session notes?
Demand for mental health care in Australia keeps climbing. In 2024–25 about 2.8 million Australians (10% of the population) received 13.0 million Medicare mental health services, a 7% rise from 2015–16, and psychologists delivered roughly half of all Medicare mental health specific services (AIHW). More clients means more documentation, and documentation is where many clinicians lose their evenings.
AI note tools promise to give that time back. Instead of typing up a session from memory, a clinician can have the conversation transcribed, summarised and shaped into a structured note in seconds, then review and sign off. The value is real, but the right tool depends on how you already work and how seriously it treats Australian privacy obligations.
For the fundamentals of what these tools produce, see our guides to what clinical notes are and how AI patient notes work.
What types of AI tools help with therapy notes?
There is no single "best" product, because three different categories of tool solve overlapping problems. Understanding the category is more useful than memorising brand names.
Dedicated AI scribes
Ambient AI scribes listen to a consultation (in person or via telehealth) and generate a draft note. Australian-founded scribes such as Heidi Health and Lyrebird Health, both Melbourne-based, launched in 2023–24 and have risen rapidly across Australian general practice, including integration with major GP platforms (The Medical Republic). They are fast and format-flexible, but most are documentation-only: they write the note and hand it back, leaving scheduling, billing and records to your other systems. We cover this category in depth in our AI scribe guide.
Therapy-specific note generators
Some tools are built specifically for mental health documentation and lean into formats therapists actually use, such as SOAP, DAP and BIRP, along with treatment-plan and progress-note structures. Mentalyc is a well-known example in this space. The trade-off mirrors the scribes: strong at notes, but a standalone layer on top of whatever practice software you already run.
AI-native practice management software
The third category folds AI documentation into the platform that also runs your calendar, client records, forms and billing, so a note is created in the same place the appointment lives. PractaLuma is AI-native practice management software for Australian mental-health practices, built so documentation, scheduling and records share one secure record rather than being stitched together across vendors. This reduces double-entry and keeps client data in one system instead of several.
How do the main options compare?
Rather than rank products (features and pricing change constantly), compare them against the criteria that decide fit for an Australian mental health practice:
- Scope. A scribe writes notes; therapy-specific tools structure clinical formats; an AI-native platform also handles bookings, records and billing. Match scope to what you actually want to consolidate.
- Format flexibility. Confirm the tool produces the note types you use. If you switch between SOAP, DAP and BIRP, see our guide to clinical note formats to check which suits which session.
- Data residency. Ask where audio and text are processed and stored, and whether any of it goes offshore. This is a compliance question, not a feature preference.
- Integration. A note that lands automatically in the client's record saves more time than one you copy and paste between apps.
- Clinician control. The tool should draft, not decide. You review and edit every note before it becomes the record.
What should Australian therapists look for in an AI notes tool?
Beyond raw features, a handful of non-negotiables separate a safe tool from a risky one.
Privacy and security. Under the Privacy Act 1988, Australian Privacy Principle 11 requires you to take reasonable steps to protect personal information, and health information is sensitive information attracting stronger protections (OAIC). Check encryption, access controls, and where data is hosted.
Documented informed consent. You need the client's informed consent before recording a session or entering their data into an AI tool, and that consent should be noted in the health record.
Clinician oversight. The clinician stays responsible for the accuracy of the record, so review every AI draft before signing off.
Format and quality. The note has to read like a clinician wrote it. For a benchmark, see our mental health progress notes examples and templates.
Cost that scales. Solo therapists and small clinics need pricing that matches their volume rather than enterprise tiers. You can compare PractaLuma's plans on our pricing page.
Is it legal to use AI for therapy notes in Australia?
Yes, with conditions. In August 2024 AHPRA and the RACGP issued guidance on AI scribes confirming that practitioners may use them, provided they obtain and document informed consent, remain responsible for the accuracy of the record, and understand how and where the tool stores and processes data, including any offshore handling (AHPRA/RACGP guidance, via MinterEllison).
In short, AI can draft the note, but the clinician owns it. This is general information, not legal advice; check your professional indemnity policy and your regulator's current position before adopting any tool.
How do you get started with AI therapy notes?
A staged rollout beats a big-bang switch:
- Start with one use case. Trial AI on straightforward sessions before applying it everywhere.
- Get and record consent. Fold the consent conversation into your intake and note the response in the record.
- Verify accuracy early. Read every draft closely for the first few weeks so you learn where the tool is strong and where it drifts.
- Pick for your whole workflow. If you want documentation, scheduling and records in one place, an AI-native platform removes the copy-paste tax. Explore PractaLuma's AI scribe and clinical notes features to see how notes flow straight into the client record.
Frequently asked questions
What is the best AI for therapy notes? There is no universal winner. Dedicated scribes suit clinicians who only want faster notes, therapy-specific generators suit those who want mental health formats out of the box, and AI-native practice software suits practices that want documentation, scheduling and records unified. Choose by scope, privacy and fit.
Are AI therapy notes compliant with Australian privacy law? They can be. Compliance depends on documented informed consent, secure storage aligned with Australian Privacy Principle 11, and knowing where data is processed. The tool alone does not make you compliant; your process does.
Can AI write SOAP or DAP notes? Yes. Most therapy-focused tools generate SOAP, DAP and BIRP notes from a session. Always review the draft, since the clinician remains responsible for clinical accuracy.
Do I need client consent to use an AI scribe? Yes. AHPRA and RACGP guidance is clear that you should obtain informed consent before recording a session or entering client data into an AI tool, and document that consent in the record.
Does AI replace the therapist's clinical judgement? No. AI drafts and structures notes; it does not assess, diagnose or decide. Every note stays under clinician review before it becomes part of the record.