This project explores the rapidly evolving integration of Artificial Intelligence (AI) into psychological practice, focusing on health service psychologists. The study critically examines the potential, limitations, and ethical/legal considerations of AI use in this field.Artificial Intelligence, particularly Large Language Models (LLMs), presents both promising applications and significant ethical concerns for psychological practice. This paper aims to provide a balanced view of AI's integration into psychology, advocating for careful oversight, ethical practices, and legal compliance to harness AI's potential responsibly. The manuscript details AI's practical uses in administrative tasks, therapeutic services, and enhancing service provision, while also addressing the potential risks such as bias introduction, deskilling, and privacy concerns. Special attention is given to the ethical and legal challenges posed by AI technologies, emphasizing the need for ongoing evaluation and updating of ethical codes and legal frameworks to align with technological advancements. This project raises awareness among psychologists about the complexities of AI application in their practice, urging a cautious yet optimistic approach to integrating these technologies. It serves as a call to action for the psychological community to actively engage in shaping the future of AI in their field, ensuring that advancements improve service quality without compromising ethical standards or client welfare.