This chapter examines the dual effects of digital technology on mental health, looking at how AI-powered tools, telepsychiatry, and mobile applications influence modern experiences of psychological identity, emotional regulation, and self-care. With the utility of tools like natural language processing (NLP), cognitive behavioral therapy (CBT) feedback, and predictive risk assessment algorithms, these digital platforms provide scalable and practical interventions. However, they also carry risks, such as over-reliance, a loss of intrinsic motivation, and an inability to recognize deep human nuances. An elaborate discussion of ‘surveillance' in the place of ‘support' is portrayed in detail through an analysis of the most common underlying technological mechanisms of different digital intervention tools. The chapter ends with an advocation of optimizing digital care by careful planning, moral supervision, and integration with human-centered assistance to guarantee that technology enhances, rather than harms, mental health outcomes.