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The timeless human need to bear witness to trauma confronts a modern "crisis of listening": a societal scarcity of capable listeners, caused by the emotional demands of the witnessing role, structural barriers, and the cultural silencing of certain narratives. This listening gap propels many individuals toward conversational AI, creating a need for a framework to analyze the new form of algorithmic listening to trauma. The present critical narrative review of the relevant clinical and technical literature develops a conceptual framework for the nascent field. In a two-stage process, we first synthesized seminal trauma theories to distill the core functions of witnessing, then conducted a targeted scoping of recent literature (PsycINFO, PubMed, Google Scholar), prioritizing peer-reviewed studies (2023-present) on trauma populations, to evaluate the capabilities and limitations of AI. The resulting AI CARE model delineates four key witnessing functions: capturing narratives, arranging patterns, resonating emotions, and embodied attunement. The review reveals a spectrum of capability: robust AI proficiency in the technical functions (capturing, arranging) contrasted with inherent constraints in the relational functions (resonating, embodying), raising critical questions regarding therapeutic depth. This lopsided proficiency gives rise to a complex landscape of utility and risk, necessitating urgent empirical scrutiny regarding the potential erosion of relational expectations, the creation of a two-tier system of care, and the redefinition of witnessing. The AI CARE model provides a language for researchers, clinicians, and developers to address the ethical challenges of algorithmic listening and guide its responsible development.