The AI Companion Economy: Virtual Relationships Creating a Multi-Billion Dollar Industry
AI-powered virtual companions are creating a rapidly growing industry. Character.AI and similar platforms have millions of users paying $10-30/month. The loneliness epidemic drives demand: AI provides 24/7 judgment-free companionship. Concerns include emotional dependency, social withdrawal, and privacy risks. The economics are compelling: subscription revenue with near-zero marginal cost.
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