The growing demand for emotional support is driving the rise of AI-powered companionship products in China, with simulated AI pets becoming increasingly popular.
As AI technology rapidly evolves, companies are tapping into the massive potential of this emerging market, offering customers interactive companions that promise comfort and a touch of cuteness.
Zhang Yi, CEO of iiMedia Research Institute, highlighted that the combination of consumer demand for emotional support and the advancement of AI technology has made AI pets a promising business venture.
Zhang told Global Times:
"The capability of current AI technologies offers this type of product greater business potential.”
He sees AI companions fulfilling the emotional needs of various consumer groups, from young adults to the elderly.
For many young people, AI pets offer a novel and less demanding alternative to real animals.
A Beijing-based student, also an AI enthusiast, shared her experience of purchasing an AI pet:
“I first learned about the product during a major assignment investigation and remembered it. I decided to buy it out of curiosity, but especially because of its adorable fluffy appearance and the colour of its fur, which is just like my dog’s.”
The pet, named "Cupboo," is a creation of Hangzhou-based Genmoor Technology and costs 1,399 yuan ($193.19) on the popular e-commerce platform Taobao.
On its international website, the Cupboo is currently retailing at $247.20 during Black Friday sales, with the original price set at $309.00.
In just three months, over 300 units have been sold, with the product’s page showing a 100% positive feedback rate.
The appeal of AI pets lies in their low-maintenance nature.
Unlike real pets, which require daily walks and feeding, AI companions offer a hassle-free alternative.
According to Zhang, the benefit of an AI pet is that it eliminates the ongoing costs of food and deworming.
However, she noted that these AI pets still lack the emotional depth and interaction flexibility of real dogs or cats.
While the AI pet market in China is flourishing, it is also gaining traction abroad.
Japanese companies Casio and Vanguard Industries debuted their AI pet Moflin in 2021, with its first shipments taking place on 7 November 2024.
Demand for Moflin quickly surged, leading to it selling out in many regions of Japan shortly after its release.
In China, AI pets are expanding beyond simple companions to include more complex features.
For example, the BabyAlpha, a quadruped robot developed by the Chinese tech firm WEILAN, offers multifunctionality.
The BabyAlpha can learn and adapt to its owner’s behaviour, while also being remotely controlled and able to patrol autonomously.
These advanced features show how AI is being integrated into companionship products with increasing sophistication.
Modern virtual pets have come a long way from the simple Tamagotchis of the 1990s.
Today’s virtual companions are powered by advanced AI, enabling them to talk, learn, and form real connections with their human caretakers.
Unlike the early digital pets, which only required basic care, these AI-enabled pets can engage in meaningful conversations and remember past interactions, creating a personalised and evolving relationship with their owners.
What makes these pets so special is the sophisticated AI behind them.
Large language models allow these digital animals to develop unique personalities, and they can engage with users through text and voice interactions.
Some even have features like digital diaries, allowing users to track their pet’s adventures, which makes the experience feel more like caring for a real animal.
Additionally, these virtual pets can help with tasks like homework, making them more interactive and useful than ever before.
This combination of AI and personal connection sets modern virtual pets apart, turning them into dynamic and engaging companions.
Looking ahead, Zhang Yi predicts that AI companions will become even more integrated into everyday life, with the potential to assist users with their emotional well-being and even monitor their physical and mental health.
This could broaden the market for AI pets, attracting not just tech enthusiasts but also families and older adults looking for a comforting companion.
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