BetterHelp Controversy: Therapist Burnout, AI Substitution & Financial Red Flags – E560

“BetterHelp customers sign up for therapy from licensed professionals, with subscriptions up to four hundred dollars per month. But according to customer accounts and online reviews, some therapists have been secretly using AI-generated messages instead of providing real human engagement. In some cases, therapists allegedly copied and pasted AI-generated responses during live chat therapy sessions. In others, patients messaging their therapists outside of live sessions received long, robotic messages that bore the hallmarks of ChatGPT.”

“Former therapists say they are forced to overload their schedules to make a living, sometimes handling 60-plus patients per week. Many work back-to-back 30-minute sessions—shorter than the industry standard 45 to 50 minutes—leaving no time to thoughtfully respond to 24/7 patient messages. BetterHelp doesn't pay therapists for overly short or overly long responses, leading to a sweet spot where AI-generated messages are particularly effective for gaming the system.”

Blue Orca Capital’s allegations against BetterHelp and highlights growing tensions in tech-enabled labor platforms. BetterHelp is accused of using AI to replace human therapists, driven by cost pressures and incentive structures. The case reflects broader risks as AI begins to reshape trust, quality, and business models in two-sided marketplaces.