Zhu believes the toy will serve only as a temporary companion during a particular stage of a child’s development and will not distort the child’s understanding of real-world relationships. 

“Our core job is to play the right part matching their development stage,” he said. 

CHINA’S HUNT FOR ‘EMOTIONAL VALUE’ 

AI companion toys are part of China’s growing emotional economy – a segment of consumption driven primarily by emotional and psychological needs. 

In this case, that need is companionship. 

“Emotional value” will become increasingly important over the long term, said Zhang Tianbing, Deloitte China’s consumer industry leader. 

On the supply side, businesses are creating products that evoke emotional connections in order to stand out in an increasingly crowded marketplace. 

On the demand front, Zhang said a more individualised generation facing economic uncertainty and slower growth is turning to products and services that provide comfort and a sense of stability. 

“Both the conflicted world and the prevalence of social media – which seems to have connected a lot of people — have in reality isolated people from society. (As a result,) emotional value, in a real sense, becomes even more important.”