San Francisco, 29 August 2025, – The global AI companion market size is anticipated to reach USD 1,40,754.2 million by 2030 and is expected to expand at a CAGR of 30.8% during the forecast period, according to a new report by Grand View Research, Inc. The rising demand for emotionally intelligent digital interactions drives market growth.

AI companions are increasingly used to provide mental health support, companionship, and personalized engagement, especially in contexts where human interaction may be limited or inaccessible. As awareness around mental well-being grows, users are turning to AI-powered platforms like Replika and Woebot for non-judgmental, always-available support systems that help manage stress, anxiety, and loneliness.

The integration of AI companions into workplace productivity tools and customer service platforms expected to drive market progress. Businesses leverage these digital assistants to automate routine tasks, summarize conversations, identify action items, and streamline communication. This boosts operational efficiency and enhances user experience by offering intelligent, context-aware support. The ability of AI companions to deliver 24/7 assistance, personalized recommendations, and quick resolutions is transforming how companies engage with customers and employees alike.

Technological advancements in natural language processing, machine learning, and emotion recognition fuel market expansion. These innovations enable AI companions to understand and respond to human emotions with increasing nuance, making interactions more intuitive and meaningful.

As AI becomes more adept at interpreting context and sentiment, its applications are broadening—from healthcare and education to entertainment and smart home ecosystems. The growing consumer preference for seamless, integrated digital experiences encourages manufacturers to embed AI companions into devices like smart speakers, wearables, and home assistants.

Order a free sample PDF of the AI companion market Intelligence Study, published by Grand View Research.

Further key findings from the report suggest:

• By type, the text-based segment accounted for the largest market revenue share in 2024.
• By application, the social interaction and companionship segment is projected to dominate the market revenue share.
• By industry vertical, the consumer segment accounted for the largest market revenue share in 2024.
• The AI companion market in the Asia Pacific region is expanding rapidly, fueled by high tech adoption rates and a strong demand for automation in business processes.
• In December 2024, KNIME, a developer of open-source enterprise software in Switzerland, launched its AI companion, K-AI, to help users co-create data workflows, providing answers, recommendations, and workflow enhancements based on user prompts.

List of Key Players in the AI Companion Market

• Amazon.com, Inc.
• Character.AI, Inc.
• Google LLC
• International Business Machines Corporation
• KNIME
• Nomi AI, Inc.
• OpenAI, LP
• Luka, Inc.
• Soul Machines
• Zoom Video Communications, Inc.