Beyond Teletherapy: How US tech is transforming mental wellness in later life, and what it means for Australians
Tech is changing fast, but what does that really mean for your mental health in midlife and beyond, here in Australia? In the United States, telehealth has moved from novelty to a normal part of everyday care for many older people. Now, the field is shifting again. AI-powered therapy tools, virtual reality environments, and new forms of tech-driven social connection, much of it emerging in California, are starting to reshape how people access and experience mental health and wellbeing support.
AI and digital tools are being designed to support therapists by offering clients optional access, encouragement, and monitoring between sessions. The goal is to help people get more out of the therapeutic relationship and keep human engagement at the centre of therapy. Let’s look at some of the latest innovations, and what they might mean for us here in Australia.
Frequently asked questions
Does online therapy actually work for older people?
Yes. A 2025 Australian study found that telehealth counselling for older people living in aged care significantly reduced depression, anxiety, and loneliness — with high satisfaction among both clients and referrers (Bhar et al., 2025). Evidence is growing that online therapy is not only effective but, for many, more accessible than in-person care.
Is AI replacing therapists?
No. AI tools are designed to support the therapeutic relationship, not replace it. Ethical guidelines are clear: AI should operate under the oversight of a registered health provider, with transparent safeguards (Zhou et al., 2024). At Upside Stories, human connection stays at the centre.
How many older Australians are using telehealth?
Around 890,000 Australians aged 55–64 used telehealth services in 2023 (ABS, 2023). The Australian telehealth market reached AUD $1.75 billion in 2025 and is projected to grow at nearly 17% annually through 2035 — driven in part by a growing older population, with more than 22% of Australians expected to be over 65 by 2026 (Expert Market Research, 2026).
Are Smartphones and the Internet Good for Mental Health in Later Life?
Internet use and smartphone ownership are now near-universal for many in midlife and older age groups. Among people in their 60s and 70s, smartphone and broadband adoption have risen steadily in recent years, opening doors to online therapy, health apps, and virtual communities.
Here in Australia, a national survey on technology take-up found that people in their 70s doubled their smartphone use between 2018 and 2021, while video calls and online health tools surged during COVID-19. Many became more skilled, though some still felt wary about privacy, scams, or the loss of human touch.
Studies indicate that regular, active use of digital devices, from smartphones to laptops, can reduce the risk of cognitive decline and support mental agility (Kim et al., 2024). Another large cohort study found that daily internet engagement in midlife was linked to a lower risk of dementia in older age (Zhang et al., 2023).
For mental health, this isn’t about endless scrolling, it’s about intentional use, such as booking therapy sessions online, joining moderated peer groups, or learning new skills through digital platforms.
How Is AI Being Used to Support Mental Health in Later Life?
AI is moving quickly from concept to practice. A major 2025 bibliometric review in JMIR AI mapped the field from 2021 to 2025, tracking a shift from foundational concepts of digital literacy, dementia care, toward personalised medicine, wearable technologies, and predictive analytics in mental health for older adults (JMIR AI, 2026).
From chatbots delivering guided coping strategies to virtual reality avatars running mindfulness sessions, the possibilities are multiplying. At Cedars-Sinai Medical Center in Los Angeles, the XAIA program combines AI and immersive virtual reality to walk clients through calming exercises in simulated environments; an approach shown to reduce stress and improve mood (Cedars-Sinai, 2025).
Beyond therapy rooms, AI companions like ElliQ and phone-based services like Meela offer conversational support, daily check-ins, and prompts for social engagement. Early evaluations suggest these tools can improve mood, reduce loneliness, and encourage healthier routines (Wall Street Journal, 2025).
AI is also being used for passive monitoring, such as the HOPE system, which uses Wi-Fi motion sensing to detect behavioural patterns linked to depression risk in older adults, without requiring wearables (Digital Health Science, 2025).
A February 2025 University of Michigan poll of 2,883 US adults aged 50 and older found that 55% had used AI tools, yet 92% wanted to know whether information came from a person or AI, and 46% had little or no trust in AI-generated health information (National Poll on Healthy Aging, 2025). While this is a US sample, the scepticism it captures likely resonates here too, particularly for older Australians who may already feel that technology moves faster than it listens.
We think that scepticism is healthy and reasonable. It's also part of why we're transparent about how this article was made, you'll find a note at the bottom of each of our articles. AI tools are most valuable when a qualified human is genuinely in the loop: reviewing the evidence, applying clinical judgement, and standing behind the content. That's how we work at Upside Stories. Transparency and human connection aren't just good values; they're the whole point.
A 2026 study published in Frontiers in Public Health found early evidence that AI can support mental wellbeing in older adults through emotional support, cognitive stimulation, and social interaction — but called for more rigorous empirical research into the mechanisms (Frontiers, 2026).
Ethical guidelines are clear: AI should operate under the oversight of a registered health provider, with transparent safeguards (Zhou et al., 2024).
Can Virtual Reality Help Older Adults with Mental Health and Brain Health?
One of the most exciting frontiers is immersive virtual reality (IVR) as a therapeutic tool.
A January 2026 systematic review and meta-analysis in PLOS Digital Health examined 10 randomised controlled trials involving 746 older adults. IVR interventions, including reminiscence, garden and forest therapy, and cognitive stimulation, showed promising results for improving psychological wellbeing (Su et al., 2026). A separate 2026 randomised controlled trial in Translational Psychiatry found VR-based relaxation to be a feasible and effective approach for managing emotional distress in older adults with mental illness (van Dijk et al., 2026).
For brain health specifically, a 2026 meta-analysis in Frontiers in Public Health found that VR interventions were associated with meaningful improvements in overall cognitive function in older adults with mild cognitive impairment (Chen et al., 2026).
VR is still emerging, and not yet in everyday clinical practice. But it's a meaningful signal that the future of mental health support for older people will look quite different from a couch and a clipboard.
Is Social Media Actually Changing Later Life, and How?
The old idea that later life is 'offline' no longer holds true. People in later life are active on Facebook, YouTube, Instagram, and increasingly TikTok, not just to stay connected, but to advocate for causes, build communities, and challenge stereotypes about ageing.
Even dating platforms are becoming part of this shift. In the US, about one in six adults over 50 has tried online dating, with half seeking a long-term partner, while others explore casual connections or new friendships (Pew Research Center, 2023). On Feeld, the number of users aged 60 and above has surged by over 300% in the past few years.
A 2024 Wired report confirms that those aged 60–80 are one of the fastest-growing demographics on dating apps like Tinder, Hinge, and Bumble. Beyond companionship, many report rediscovering intimacy, confidence, and sexual satisfaction, demonstrating how later life can be a time of new and unexpected chapters.
Where Is Telehealth Heading in Australia, and What's Driving It?
Australia's telehealth market reached AUD $1.75 billion in 2025, projected to grow at nearly 17% annually through 2035 (Expert Market Research, 2026). The Australian Government's expansion of Medicare-funded telehealth services in March 2025 — including additional specialist remote consultations for chronic disease management and mental health — signals that virtual care is now a structural part of the health system, not a pandemic stopgap.
Yet a 2026 analysis noted a more complex picture: much of telehealth growth is being driven not just by innovation, but by cost-of-living pressure. With out-of-pocket healthcare costs exceeding $33 billion per year in Australia, and health insurance premiums rising 4.41% in 2026, telehealth is for many people becoming the most affordable and accessible way to see a healthcare provider (TherapyInsights, 2026).
For people in midlife and later life, especially those in regional areas, managing chronic conditions, or juggling caregiving, this matters. A 2025 Australian feasibility study found that telehealth counselling for older adults in aged care significantly reduced depression, anxiety, and loneliness, with high satisfaction rates among both clients and referrers, and a low dropout rate (Bhar et al., 2025).
You might also like to take a look at our companion article on online therapy in Australia.
What If Technology Feels Like It Wasn't Designed for You?
Even as adoption rises, not everyone feels equally confident. In the US, rural areas and lower-income communities show lower uptake of telehealth (Ettman et al., 2025). Sensory, cognitive, and physical changes in later life also affect how people engage with technology, which may be why some older Australians feel technology is "designed for younger people" (Orthia et al., 2022).
That's why the best providers focus on accessibility. Larger fonts, captions, high-contrast displays, simplified logins, and tech rehearsal calls before a session all help make innovation more inclusive. At Upside Stories, our sessions use Coviu (secure, simple video software) and we're happy to do a trial run before your first appointment.
Technology Should Extend Human Connection — Not Replace It
The bigger picture is emerging. Technology is reshaping how people in midlife and older age care for their mental health. In Australia, older adults have adapted quickly. Globally, research shows real health benefits, from lower dementia risk linked to regular internet engagement (Zhang et al., 2023), to reduced depression and anxiety through telehealth counselling (Bhar et al., 2025) and virtual reality interventions (Su et al., 2026), and greater social connection through AI companion tools (Wall Street Journal, 2025).
But adoption is only part of the story. Comfort, trust, and ethical safeguards matter just as much as the technology itself. Many people remain cautious about privacy and the fear of losing the human element in care. That's the right instinct. The future isn't about replacing connection, it's about extending it.
At Upside Stories, our online therapy and wellbeing programs combine evidence-based approaches with the best of what digital innovation can offer, always keeping human connection at the centre of our work.
Curious how online therapy could work for you?
To discuss your online therapy needs, book a free 20-minute consult with Upside Stories. We’d love to hear from you.
References & reading
Australian Bureau of Statistics. (2023). Estimated number of people using telehealth services for own health in Australia 2023, by age group. Statista. https://www.statista.com/statistics/1290633/australia-number-of-people-using-telehealth-by-age/
Bhar, S., et al. (2025). Telehealth counselling in residential aged care to reduce depression, anxiety, and loneliness: a feasibility and acceptability study. Australian Psychologist. https://doi.org/10.1080/00050067.2025.2570763
Cedars-Sinai. (2025, March 4). Study: Mental health gets a boost from artificial intelligence. https://www.cedars-sinai.org/newsroom/study-mental-health-gets-a-boost-from-artificial-intelligence
Chen, L., Sun, Y., Han, Q., Sun, Q., Jiang, Z., & Ma, W. (2026). The effects of virtual reality-based interventions on cognitive function, depressive symptoms, and daily functioning in older adults with mild cognitive impairment: a systematic review and meta-analysis. Frontiers in Public Health, 13, 1682781. https://doi.org/10.3389/fpubh.2025.1682781
Digital Health Science. (2025, March 3). AI meets mental health: Wi-Fi-based depression detection for aging populations. https://www.digitalhealthscience.org/2025/03/03/ai-meets-mental-health-wi-fi-based-depression-detection-for-aging-populations
Ettman, C. K., et al. (2025). Trends in mental health care and telehealth use across area deprivation. PNAS Nexus, 4(2), pgaf016. https://doi.org/10.1093/pnasnexus/pgaf016
Expert Market Research. (2026). Australia telehealth market report and forecast 2026–2035. https://www.expertmarketresearch.com.au/reports/australia-telehealth-market
Frontiers in Public Health. (2026). Aging with AI companionship: The role of artificial intelligence in enhancing the mental well-being of older adults. https://doi.org/10.3389/fpubh.2026.1725763
Kim, H. J., Lee, S. H., & Park, M. J. (2024). Virtual reality–based cognitive behavioral therapy for depression in older adults: A randomized controlled trial. Journal of Affective Disorders, 355, 150–159. https://doi.org/10.1016/j.jad.2024.05.024
JMIR AI. (2026). The role of AI in improving digital wellness among older adults: Comparative bibliometric analysis. https://ai.jmir.org/2026/1/e71248
National Poll on Healthy Aging. (2025). Artificial intelligence use and views: Key findings from the National Poll on Healthy Aging. University of Michigan. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC12762744/
Orthia, L., Maccora, J., & McCallum, J. (2022). "I am trying to keep up to date…but it is moving so fast": Older Australians' digital engagement in turbulent times. National Seniors Australia. https://nationalseniors.com.au/research/older-australians-digital-engagement-in-turbulent-times
Pew Research Center. (2023, July 17). Dating at 50 and up: Older Americans' experiences with online dating. https://www.pewresearch.org/short-reads/2023/07/17/dating-at-50-and-up-older-americans-experiences-with-online-dating
Su, J. J., Chan, C. K., Batalik, L., et al. (2026). Immersive virtual reality-based intervention for psychological wellbeing among older adults: A systematic review and meta-analysis. PLOS Digital Health, 5(1), e0001110. https://doi.org/10.1371/journal.pdig.0001110
TherapyInsights. (2026, March 27). Telehealth is exploding in Australia — but not because of innovation. https://www.therapyinsights.com.au/p/telehealth-australia-affordability-cost-of-care-2026
van Dijk, J., & Hacker, K. (2026). Managing emotional distress in older adults with mental illness: A randomized controlled trial evaluating virtual reality relaxation. Translational Psychiatry, 16, 162. https://www.nature.com/articles/s41398-026-03955-1
Wall Street Journal. (2025, February 18). The friendly caller who's helping seniors feel less lonely. https://www.wsj.com/health/wellness/the-friendly-caller-whos-helping-seniors-feel-less-lonely-cd21ef54
Wired. (2024, March 21). Boomergasms are booming. https://www.wired.com/story/boomergasms-are-booming
Zhang, Y., et al. (2023). Internet use and risk of dementia: A prospective cohort study. Journal of the American Geriatrics Society, 71(8), 2382–2391. https://doi.org/10.1111/jgs.18413
Zhou, X., et al. (2024). Ethical challenges in AI-enabled mental health care: A narrative review. Frontiers in Psychiatry, 15, 1339201. https://doi.org/10.3389/fpsyt.2024.1339201
