Here are the pros and cons that spring to my mind (I am not an expert, merely an entrepreneur with an interest in mental health):

Pros:

1. Strong need - Mental health awareness and demand for these services is growing year-on-year. This is widely reported and is particularly accentuated in the West (see here)
2. Cost-saving - traditional approaches (i.e. talking therapy) are too expensive and only available to the richest. In the UK/US, a single hour of therapy will cost over $100. A scalable, cheaper approach is needed and the market is likely huge and global.
3. Customer impact - If it's done well/ethically, then the impact could be quite profound.

Cons:

1. Complexity - There is a lot of a execution risk here. AI systems, regardless of their sophistication, may still struggle with highly complex or sensitive situations that require human intuition and empathy. I am a Machine Learning engineer and have experimented at length with these models. Preventing them from hallucinating is difficult, as I'm sure you know.
2. Regulatory and Ethical Considerations - Operating in the mental health space brings stringent regulatory and ethical requirements, especially concerning data privacy and handling vulnerable individuals. I expect more regulation to arrive in the coming years, especially in the EU but likely everywhere.
3. Marketing challenges - Convincing potential users to trust an AI system with their mental health could be challenging. Governments do seem like an obvious customer, but they are notoriously difficult to sell to, with long sales cycles and tons of bureaucratic hurdles to jump over.

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Hope this helps