Generative artificial intelligence (AI), a rapidly evolving field of AI, holds transformative potential in mental health by addressing critical challenges such as accessibility, affordability, and personalization of care. Generative AI facilitates innovative solutions in illness screening, diagnosis, treatment, and psychoeducation. Despite these promises, integrating generative AI into mental health care poses significant risks, including misinformation, algorithmic bias, data privacy concerns, and a lack of regulatory oversight. This paper examines the opportunities and risks associated with generative AI in mental health and emphasizes the need for robust safeguards. Recommendations include implementing ethical design principles, developing clear regulatory frameworks, ensuring mental health professionals’ involvement, and prioritizing data privacy and security. By balancing innovation with caution, generative AI can advance mental health care responsibly and effectively.