PUBLISHER: The Business Research Company | PRODUCT CODE: 1877492
PUBLISHER: The Business Research Company | PRODUCT CODE: 1877492
An artificial intelligence (AI) companion is an intelligent digital system designed to engage with humans in a natural, adaptive, and personalized manner using AI technologies. It communicates through text, voice, or virtual avatars, learning from user behavior, preferences, and emotions to offer companionship, assistance, and emotional support. AI companions are utilized for social interaction, mental health support, education, and personal productivity, simulating elements of human conversation and empathy to build meaningful and engaging relationships with users.
The key components of artificial intelligence (AI) companions are software, hardware, and services. Software refers to the programs and algorithms that enable AI companions to understand, learn, and respond to users intelligently. The AI companion types include text-based artificial intelligence (AI) companions, voice-based artificial intelligence (AI) companions, and multi-modal artificial intelligence (AI) companions, which are deployed through on-premises and cloud-based deployment modes. They are used across various applications, including social interaction and companionship, mental health support, personal assistance, and education and learning aid, serving industry verticals such as consumer, business, healthcare, education, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The artificial intelligence (AI) companion market research report is one of a series of new reports from The Business Research Company that provides artificial intelligence (AI) companion market statistics, including artificial intelligence (AI) companion industry global market size, regional shares, competitors with an artificial intelligence (AI) companion market share, detailed artificial intelligence (AI) companion market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) companion industry. The artificial intelligence (AI) companion market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The artificial intelligence (AI) companion market size has grown exponentially in recent years. It will grow from $13.96 billion in 2024 to $18.35 billion in 2025 at a compound annual growth rate (CAGR) of 31.5%. The growth in the historic period can be attributed to an increase in time spent alone, rising acceptance of online counseling and self-help, growth in messaging and chat-based communication habits, post-pandemic focus on mental well-being, and expansion of remote and hybrid work practices.
The artificial intelligence (AI) companion market size is expected to see exponential growth in the next few years. It will grow to $54.19 billion in 2029 at a compound annual growth rate (CAGR) of 31.1%. The growth in the forecast period can be attributed to increasing cost-of-living pressures and financial anxiety, expansion of employer-supported well-being initiatives, normalization of proactive self-care habits, growing dependence among students on continuous study support, and rising social isolation. Major trends in the forecast period include developments in multimodal large language models, innovation in electromyography-based wrist interfaces for silent control, advancements in in-lens augmented reality displays, progress in on-device automatic speech recognition and text-to-speech systems, and enhancement in natural language understanding using retrieval-augmented generation.
The increasing prevalence of mental health conditions is expected to drive the growth of the artificial intelligence (AI) companion market going forward. A mental health condition refers to a psychological or medical disorder that significantly impacts a person's emotions, thoughts, moods, or behaviors, affecting their daily functioning. The rise in mental health conditions is attributed to growing social isolation, which heightens loneliness and stress, undermines emotional well-being, and contributes to the onset or worsening of psychological issues. Artificial intelligence (AI) companions support mental health by providing real-time conversations, emotional recognition, and personalized coping mechanisms, assisting users in managing anxiety, stress, and mood variations through continuous, non-judgmental interaction that promotes emotional well-being and early intervention. For instance, in May 2024, according to the American Psychiatric Association, a United States-based professional organization of psychologists, approximately 43% of adults reported feeling more anxious, compared to 37% in 2023 and 32% in 2022, indicating a consistent rise in anxiety levels. Therefore, the increasing prevalence of mental health conditions is fueling the growth of the artificial intelligence (AI) companion market.
Key companies operating in the artificial intelligence (AI) companion market are focusing on developing advanced technologies such as electromyography (EMG)-based gesture control to enhance user experience and interaction. EMG-based gesture control refers to technology that converts muscle signals into digital commands, allowing users to operate devices through subtle physical movements without direct touch. For instance, in September 2025, Meta, a United States-based technology company, introduced the Meta Ray-Ban Display featuring the Meta Neural Band, an EMG wristband that enables users to control their AI glasses through minor hand movements. It allows users to remain engaged and connected by displaying information only when needed through a full-color, high-resolution interface. The glasses are equipped with built-in microphones, speakers, and cameras powered by AI, ensuring a hands-free and immersive experience. The Meta Neural Band, provided with each pair, interprets muscle activity into commands for the glasses, allowing intuitive control through slight gestures. The wristband is lightweight, durable, and comfortable for extended use, featuring up to 18 hours of battery life and an IPX7 water resistance rating.
In August 2024, Google LLC, a United States-based technology company, acquired Character.AI for an undisclosed amount. Through this acquisition, Google obtained a non-exclusive license to Character.AI's proprietary large language model (LLM) technology, enabling the enhancement of its AI products with improved personalization and advanced functionalities. Character.AI is a United States-based company specializing in chatbot and artificial intelligence companions.
Major players in the artificial intelligence (AI) companion market are Amazon.com Inc., Google LLC, International Business Machines Corporation, Cisco Systems Inc., Zoom Communications Inc., UBTech Robotics Corp Ltd, Kore.ai Inc., Avaamo Inc., LivePerson Inc., Rasa Technologies GmbH, Soul Machines Ltd, Woebot Health Inc., Kasisto Inc., Pypestream Inc., Hanson Robotics Ltd, Luka Inc., SnatchBot Ltd, Cleverbot, Pandorabots Inc., Emotix.
North America was the largest region in the artificial intelligence (AI) companion market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in artificial intelligence (AI) companion report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the artificial intelligence (AI) companion market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The artificial intelligence (AI) companion market consists of revenues earned by entities by providing services such as software development, cloud-based AI support, system integration, maintenance and updates, and user training. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) companion market also includes sales of products such as virtual assistants, mental wellness support tools, personalized learning aids, social interaction platforms, and productivity management assistants. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Artificial Intelligence (AI) Companion Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on artificial intelligence (ai) companion market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for artificial intelligence (ai) companion ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The artificial intelligence (ai) companion market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.