A robot makes coffee at a park in Guangming District of Shenzhen, south China's Guangdong Province, Nov. 27, 2024. [Photo/Xinhua]

SHENZHEN -- Able to accompany children at night and capable of alerting parents of potential mental health risks in kids, an AI companion robot for children developed by a Chinese company recently completed an early stage small-scale startup financing initiative, also known as an angel round, worth tens of millions of yuan.

This product of Shenzhen Xuanyuan Technology Co., Ltd. (X-ORIGIN-AI) features deep integration of emotion recognition and personalized information processing, providing a more emotionally valuable companionship experience and injecting new vitality into current AI companion product options on the market, according to its Shenzhen-based developer.

"We have always been committed to continuously improving the interaction quality between robots and humans," said Li Yunzhou, founder of the company.

Xuanyuan Technology is a microcosm of the rapid development and widespread recognition of the AI companion industry in China in recent years.

A report recently released by Tencent Research Institute points out that compared to the European and American markets -- AI companionship in China enjoys more fertile ground for large-scale implementation.

The report found that only 4.6 percent of those surveyed believed their companionship needs were currently fully met, with the majority facing various social dilemmas. The survey also revealed that 48 percent worry about affecting the other person's mood when sharing negative emotions, which is one of the most common social challenges they face.

Meanwhile, 79 percent of those interviewed for the report expressed high expectations concerning AI companionship -- believing that such products could allow them to express emotions without worrying about the other person's feelings, thereby providing a more suitable environment for expressing negative feelings.

AI companionship offers improved potential to meet the needs of vulnerable groups such as the elderly, children and people with disabilities.

Jiang Xiaoxia, a resident in the southern Chinese metropolis of Shenzhen, has a son aged 8 who is full of curiosity about the world. "He usually asks all kinds of outlandish questions that I can't answer, but luckily we bought an AI companion robot to chat with him," Jiang said.

"Many of our generation have no siblings and our parents are getting old with no one to take care of them. I believe that in the future, robots will play a role in taking care of the daily lives of the elderly and helping them alleviate loneliness," said Zhang Jun, another Shenzhen resident.

From the perspective of industry insiders, AI companion robots currently on the market are still relatively homogeneous -- mostly "smart speakers" that forms dialogues using large models. Emotional interaction is expected to become the next development track for AI companion robots, ushering in a new wave of financing and entrepreneurship.

In the first half of 2023, TangibleFuture (Dongguan) Intelligent Hardware Co., Ltd., a smart hardware company focusing on interactive innovation, launched its first robot, LOOI, which became an internet hit.

This robot, driven by ChatGPT technology, features vivid character traits and vibrant gestures and can interact with users during games. Its bionic behavior system makes the robot's conduct closer to that of a real living being -- delivering improved emotional resonance to users.

In November 2023, Shanghai Luobo Intelligent Technology Co., Ltd. (Robopoet) completed an angel round of financing worth tens of millions of yuan. Its first product is being positioned as an "AI trendy toy," with the first three rounds of prototype machine design and development already completed, and release and mass production expected to take place in 2025.

However, many industry experts also warn that it remains very difficult for an AI to act fully like a human being. There are still many technical aspects that need to be developed, but this also provides broad market development prospects.

"The evolution of living organisms has special properties and AI currently finds it difficult to provide a real feeling. But the advantage of robots is that they can understand humans from more dimensions and respond, while they are also more stable," said Yang Jianbo, founder of Beijing Keyi Technology Co., Ltd.

"I believe AI robots will coexist organically with pets and humans," Yang added.