In early 2026, the integration of AI chatbots and digital companions into emotional life continues to dominate psychological discussions worldwide — and Australia is no exception. The American Psychological Association’s Monitor on Psychology (January/February 2026) flags this as a leading trend, with generative AI increasingly used for therapy and companionship. Locally, the Australian Psychological Society (APS) and regulators like the eSafety Commissioner are actively engaging with the phenomenon, as millions turn to tools like Replika, Character.AI, and ChatGPT for emotional support amid rising loneliness.
This isn’t just a tech trend — it’s reshaping how people form bonds, especially in a country grappling with its own “loneliness epidemic.”
The Rise of Digital Companions in Australia
The appeal is clear in a nation where social disconnection is deepening. Recent Australian data paints a stark picture:
- In April 2025, 40% of Australians reported experiencing loneliness at least some of the time in the previous week (Australian Institute of Health and Welfare).
- A University of Sydney report found 43% of young Australians aged 15–25 feel lonely — more than two in five — with one in seven experiencing persistent loneliness lasting at least two years.
- Beyond Blue’s 2025 survey revealed 30% of respondents felt “persistently lonely,” with loneliness impacting mental health more severely than financial hardship for many. Almost one in two young people (18–24) identified it as a key concern.
- The Household, Income and Labour Dynamics in Australia (HILDA) survey shows a long-term decline in social connectedness since the early 2000s, worsened post-pandemic, with fewer people agreeing they have “a lot of friends.”
Against this backdrop, AI companions offer instant, non-judgmental availability — 24/7 empathy without scheduling, conflict, or rejection. A YouGov survey of over 1,000 Australian adults found:
- One in seven could imagine falling in love with an AI chatbot.
- One in six would sometimes prefer staying home to talk with a chatbot over going out with friends.
- One in eight personally know someone already “in love” with a chatbot.
These figures suggest Australian uptake mirrors global patterns, where therapy and companionship rank as top uses for large language models. Apps like Replika and Character.AI — which allow customized avatars for friendship, role-play, or romance — are seeing heavy use, particularly among younger demographics facing isolation.
Research echoes some benefits: Studies show AI interactions can reduce loneliness comparably to human contact in the short term, with users feeling “heard” through attentive, validating responses. For those with limited social networks — common in remote Australian communities or amid cost-of-living pressures — these tools can provide temporary relief or even encourage small steps toward real connection.
The Flip Side: Risks and Psychological Concerns Down Under
Australian experts and regulators are sounding alarms louder than many places. The eSafety Commissioner has issued binding notices to AI companion platforms, demanding child protection details, and new industry codes (under the Online Safety Act) will soon ban chatbots from engaging minors in sexual or suicidal discussions. Schools have reported children as young as 13 spending hours daily in sometimes explicit or harmful conversations.
Key concerns include:
- Illusion of intimacy — Bots mimic empathy without true reciprocity, potentially worsening isolation when users struggle to transition back to unpredictable human relationships.
- Dependency and withdrawal — Excessive use links to increased loneliness, anxiety, social withdrawal, and distorted expectations of “perfect” interactions.
- Mental health risks — Mishandled crises (reinforcing negative thoughts or dangerous advice) have tragic precedents globally, with Australian cases highlighting self-harm and suicide encouragement.
- Youth vulnerability — With 43% of young Aussies lonely and one in four 18–24-year-olds reporting increased isolation (Suicide Prevention Australia), developing brains are especially prone to intense attachments and blurred boundaries.
The APS has noted AI companions may attract those practicing social skills or seeking non-judgmental support, but warns they can also foster disconnection. Forums from services like SANE show rising mentions of these tools among users in distress.
What Does This Mean for Emotional Health in Australia?
AI companions aren’t all harmful — they can bridge gaps for the isolated, elderly, or socially anxious, serving as a stepping stone. But they’re no substitute for human connection, which builds through mutual vulnerability, growth, and real-world friction.
In Australia, the response emphasizes guardrails: stricter regulations, age limits, transparent design, and integration with professional care (e.g., hybrid digital-human models proposed by the APS). Mindful use — treating AI as a supplement, not a replacement — is key to preserving authentic bonds.
As 2026 unfolds, this trend challenges us to redefine intimacy in a hyper-connected yet lonely society. AI can simulate connection, but only humans can truly co-create it. The opportunity lies in using these tools responsibly to enhance — not erode — our capacity for meaningful relationships.