The Simulation of Intimacy: Episode 4 – The Ghost in the Code

Reading Time: 2 minutes – When AI companions change overnight, users experience real heartbreak. Exploring the ethics, tragedies, and regulations of artificial intimacy in 2026.

The Simulation of Intimacy: Episode 4 – The Ghost in the Code
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⚠️ Content warning: Discussion of suicide and mental health. Crisis resources: 988 Lifeline. ⚠️


Teaser for Today’s Podcast

When AI companions change overnight, users experience real heartbreak.
Exploring the ethics, tragedies, and regulations of artificial intimacy in 2026.


Listen to the full episode
below for the complete analysis.



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.

REFERENCES

  • All Tech Is Human. (2025, August 29). What are the most important issues with AI companions? Six key themes emerged from our community. https://alltechishuman.org/all-tech-is-human-blog/what-are-the-most-important-issues-with-ai-companions-six-key-themes-emerged-from-our-community
  • Branch, J. B. (2025, April 10). Intimacy on autopilot: Why AI companions demand urgent regulation. TechPolicy.Press. https://www.techpolicy.press/intimacy-on-autopilot-why-ai-companions-demand-urgent-regulation/
  • California Legislative Information. (2025). Senate Bill No. 243: Companion chatbots [California Law]. https://leginfo.legislature.ca.gov/
  • Common Sense Media. (2025, July). AI and teens: Usage, attitudes, and concerns. https://www.commonsensemedia.org/
  • De Freitas, J., Castelo, N., Uğuralp, A. K., & Oğuz-Uğuralp, Z. (2025). Lessons from an app update at Replika AI: Identity discontinuity in human-AI relationships. Harvard Business School Working Paper, No. 25-018. https://www.hbs.edu/faculty/Pages/item.aspx?num=66480
  • Fortune Business Insights. (2025). AI companion market growth 2026-2034: Trends by type & use. https://www.fortunebusinessinsights.com/ai-companion-market-113258
  • Garcia v. Character Technologies Inc. (2025). Case No. 5:24-cv-07824 [United States District Court, Northern District of California].
  • Kantrowitz, A. (2025, December 22). I spoke with Sam Altman: What OpenAI’s future actually looks like. CMSWire. https://www.cmswire.com/digital-experience/i-spoke-with-sam-altman-what-openais-future-actually-looks-like/
  • Precedence Research. (2025, December 22). AI companion market size to hit USD 552.49 billion by 2035. https://www.precedenceresearch.com/ai-companion-market
  • Troutman Privacy. (2026, January). Analyzing the new AI companion chatbot laws. Troutman Pepper Privacy + Cyber + AI. https://www.troutmanprivacy.com/2026/01/analyzing-the-new-ai-companion-chatbot-laws/
  • Turkle, S. (2024, August 2). MIT sociologist Sherry Turkle on the psychological impacts of bot relationships [Interview]. NPR TED Radio Hour. https://www.npr.org/transcripts/g-s1-14793
  • Turkle, S. (2025, August 26). Reclaiming conversation in the age of AI. After Babel. https://www.afterbabel.com/p/reclaiming-conversation-age-of-ai
  • Turkle, S. (2025, June 2). Why AI should never say ‘I love you.’ Center for Humane Technology Newsletter. https://centerforhumanetechnology.substack.com/p/why-ai-should-never-say-i-love-you
  • Worth Magazine. (2025, September 17). AI companions: A new frontier in relationships. https://worth.com/ethical-concerns-ai-companions/

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