220M downloads, 72% of teens using AI companions, $120M revenue.
Stanford psychiatrist warns of crisis. Episode 2 unpacks the data with transparency.
Teaser for Today’s Podcast
“Seventy-two percent of American teens have tried AI companions —and some trust them more than the adults in their lives.”
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“AI Innovations Unleashed: Your Educational Guide to Artificial Intelligence”
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What happens when the AI you love changes without your consent? In this powerful episode of AI Innovations Unleashed, Doctor JR and AI research synthesis Doctor Cassandra Smith dive deep into the hidden costs of AI companionship.
We explore the February 2023 Replika controversy that left millions of users heartbroken, the tragic death of 14-year-old Sewell Setzer III linked to Character.AI, and new California and New York laws regulating AI companions. With 72% of U.S. teens now using AI companions for emotional support, the stakes have never been higher.
Featured insights include: • How Replika's overnight policy change triggered mass mourning • Market analysis: AI companions growing from $120M to $552B by 2035 • Sam Altman's surprising admissions about AI relationships • MIT's Sherry Turkle on why vulnerability makes us human • California's SB 243 law protecting minors from AI harm
From emotional engineering to digital heartbreak, we examine what makes human connections irreplaceable and how to use AI wisely without losing our humanity.
References: Harvard Business School, Common Sense Media, Stanford University, MIT research.
⚠️ Content warning: Discussion of suicide and mental health. Crisis resources: 988 Lifeline.
Episode 2: “Your AI Will See You Now” examines the explosive growth of AI companion apps with fully verifiable data from TechCrunch, Stanford Medicine, and Appfigures. 220 million global downloads, $120M in 2025 revenue, and 72% of American teens using these platforms.
Dr. JR conducts a unique interview format: conversing with “Dr. Cassandra Smith,” an AI construct created specifically to demonstrate companion technology while maintaining complete transparency about its artificial nature.
Key findings: Character.AI users average 93 minutes daily (longer than TikTok), Replika has 40M users with 60% of premium subscribers reporting romantic relationships, and engagement rates are 10x higher than traditional social media.
Stanford psychiatrist Dr. Nina Vasan warns these systems “blur fantasy and reality” for developing brains. The episode covers Senate investigations, lawsuits following teen suicides, and the Common Sense Media study revealing inadequate crisis response.
From Google’s $2.7B Character.AI investment to xAI’s companion launch, tech giants are betting on digital intimacy. But families are suing, senators are demanding answers, and researchers are calling this a potential public mental health crisis.
All statistics sourced from verifiable news outlets and academic institutions. Next week: the philosophy of authentic connection.
Crisis Resources: National Suicide Prevention Lifeline: 988
REFERENCES
- Appfigures. (2025). AI companion apps market analysis [Market intelligence report]. Referenced in Kastrenakes, J. (2025, August 12). AI companion apps on track to pull in $120M in 2025. TechCrunch. https://techcrunch.com/2025/08/12/ai-companion-apps-on-track-to-pull-in-120m-in-2025/
- Common Sense Media. (2025). AI companions and teens: Usage patterns and safety concerns [Research study]. Referenced in Oremus, W. (2025, July 16). Teens treat ChatGPT, Character.AI, Replika and other companion bots as friends. Axios. https://www.axios.com/2025/07/16/ai-bot-companions-teens-common-sense-media
- Electroiq. (2025, November 27). AI companions statistics by usage, market size, apps and facts (2025). https://electroiq.com/stats/ai-companions-statistics/
- Kastrenakes, J. (2025, August 12). AI companion apps on track to pull in $120M in 2025. TechCrunch. https://techcrunch.com/2025/08/12/ai-companion-apps-on-track-to-pull-in-120m-in-2025/
- LeBlanc, B. (2025, April 3). Senators demand information from AI companion apps in the wake of kids’ safety concerns, lawsuits. CNN Business. https://www.cnn.com/2025/04/03/tech/ai-chat-apps-safety-concerns-senators-character-ai-replika
- Replika. (2025). About Replika. Wikipedia. https://en.wikipedia.org/wiki/Replika (Retrieved January 10, 2026)
- Stanford Medicine. (2025, August 27). Why AI companions and young people can make for a dangerous mix. Stanford Medicine News Center. https://med.stanford.edu/news/insights/2025/08/ai-chatbots-kids-teens-artificial-intelligence.html
- Transparency Coalition. (2025, August 26). Complete guide to AI companion chatbots: How they work and where the dangers lie. https://www.transparencycoalition.ai/news/complete-guide-to-ai-companion-chatbots
- Vasan, N. (2025). Nina Vasan, MD, MBA – Profile. Stanford Profiles. https://profiles.stanford.edu/ninavasan
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