Virtual reality (VR) is emerging as an innovative tool in psychotherapy. In this article, we review the evidence base for the use of VR in therapy, focusing on the treatment of psychotic disorders. We present a fictional case study based on real-life patient pathways from several psychosis treatment units at Oslo University Hospital, showing how VR can be used to address anxiety and avoidance behaviours in patients with psychotic disorders. Furthermore, we introduce RecoVRy, a novel Norwegian intervention combining VR and artificial intelligence (AI) to help individuals with psychotic disorders manage everyday anxiety. Although integrating VR and AI holds considerable potential, we also discuss challenges related to privacy and ethical considerations. We conclude that although VR therapy probably does not represent a universal solution, the technology constitutes a valuable supplement that can enrich therapeutic practices and potentially contribute to significant health and socioeconomic savings. Finally, we emphasise the need for further research to fully realise this potential. Keywords: Virtual reality, VR, virtual reality exposure therapy, VRET, artificial intelligence, AI, psychosis, schizophrenia