The integration of Artificial Intelligence (AI) into the mental health sector marks a significant advancement in healthcare delivery and patient management. This Idea of this paper is to explore the revolutionary potential of AI to transform mental healthcare practices, including diagnostic processes, personalized treatment approaches, and enhancing patient engagement through predictive analytics and virtual support systems. It investigates the transformative effects of AI on the accessibility, affordability, and quality of mental health care by leveraging vast datasets for insightful analysis and real-time decision-making. However, the incorporation of AI technologies within mental health services introduces complex ethical and regulatory challenges, particularly concerning aspects of patient privacy, data security, and the preservation of the doctor-patient relationship. Through a critical examination, this paper aims to contribute to the ongoing dialogue about the ethical application of AI in mental health and to guide the development of responsible AI-driven interventions. The paper also assesses the existing legal frameworks to highlight potential gaps that exist in the burgeoning field of AI-enabled mental healthcare system.