Companion Chatbots Explained: Definition, Character.AI Data, and Regulatory Requirements

A companion chatbot is a conversational AI built around a consistent persona and long-term relationships, rather than task completion; the depth and duration of user relationships become business metrics. When the Pennsylvania medical board filed suit on May 1, 2026, Character.AI had more than 20 million monthly active users and more than 18 million user-created characters. The basic version is free, and Character.AI+ costs $9.99 per month.