Lately, we’ve noticed emotional companion products are becoming insanely profitable. And fast. An AI pet launches on crowdfunding and pulls in $200,000 in just 24 hours. In the US and Europe, the growth of emotional interactive toys has even outpaced smartwatches. Smart sellers are blending AI with everyday products like toys, gifts, and décor to create interactive emotional products. Some teams quietly built scalable products, selling over 200,000 units in a single year.
Today, we’re diving into a few of the most interesting products to see how they turning emotion, companionship, and AI into a lucrative business.
Latest Hot AI Companion Products
Always-listening "friend"
This AI companion is probably the hottest product right now. It comes as a necklace that lights up and interacts when you press it. Priced at $129, it has a built-in microphone that continuously listens to its surroundings. In short, it takes the online voice chat experience and brings it offline, turning it into a wearable AI chat device that can carry everywhere.
The main selling point is everyday companionship. Whether you’re at home, on the subway, or just hanging out alone, it’s there “chatting with you,” which is why it constantly records and collects environmental sounds. Pre-orders sold out in the first week, and over 5,000 people are already on the waiting list.
The marketing was clever too. Before the March 2025 launch, the team plastered huge posters in the New York subway to hype the concept of an “AI friend,” sparking conversations about emotional companionship and the real-world potential of AI. From design, usage scenarios to marketing strategy, everything is aligned.
AI life companion camera
Another highly intriguing product is Looki, which hit the market just three months ago. It takes a visual approach, focusing on capturing the highlights of your everyday life. Unlike GoPro, which is built for extreme sports or travel adventures, Looki is all about the warm, meaningful moments of ordinary days. Its core selling point is AI-powered automatic video creation. It can take scattered clips and turn them into seamless highlight reels, like kids growing up, family gatherings, daily commutes, or pets’ little antics.
The design is ultra-lightweight, weighing just 30 grams, wearable around the neck or attachable magnetically to clothing. Its main feature is Story Mode, which records videos at set intervals throughout the day, with a battery life of around 12 hours. The AI core recognizes people, scenes, and activities, automatically organizing clips and highlighting key moments to create short “Vlog-style” recap videos. There’s also a Q&A function, allowing the companion AI to answer questions such as “Which restaurant was visited last night?” by retrieving the answer directly from the recorded footage.
These AI companion products are undeniably captivating and will only continue to evolve in the future, but for now, they still face some challenges. First, there’s the privacy issue. Devices like Friend and Looki often require users to consent to the collection of audio, video, and voice data for AI training. Friend constantly listens to ambient sounds, while Looki automatically captures everyday moments, naturally raising concerns about personal privacy.
Second, there’s the technical challenge. Voice recognition and AI response speed still have room for improvement, and in complex environments or during extended conversations, the experience may not always feel smooth.
Finally, there’s the cost factor. Developing these devices involves significant upfront investment in hardware design, AI training, and app development. High development costs often translate into higher retail prices, which can limit rapid market adoption.
Kids’ AI toys are taking off
In the children’s toy market, AI products are entering a rapid growth. Most of them start from basic interaction needs like text, voice, or even video conversations. But a toy that can “just chat with kids” isn’t enough. The real value comes from defining clear scenarios and solving real needs. For parents, what matters is whether AI can actually support early learning and cognitive development.
A great example is a project featured in the 2025 UX Design Awards, which blends traditional wooden blocks with AI. As kids move the block characters around (recognized through NFC), the AI instantly generates and narrates personalized new stories.
Luka’s reading robot focuses on a very specific vertical: early childhood reading. Using a camera to recognize picture book pages, it reads exactly the page the child turns to, while also supporting interactive voice dialogue, bringing AI companionship and education together in a much deeper way.
There’s also Haivivi’s BubblePal, which doesn’t just wrap AI inside a plush toy. Instead, it turns the AI into a small interactive module that clips onto a plushie or necklace, essentially giving the toy a “soul.” By pairing this with well-known IPs (like Elsa, Disney characters, PAW Patrol, or Ultraman), kids can chat and interact with the characters they already love.
High-Selling Emotion Products Without AI
Sometimes, there’s no need for AI to make a product take off. As long as it taps into precise everyday emotional needs, it can still become a hit.
Tiny display, huge business impact
A good example is Busytag, an office-friendly gadget that qucikly went viral. It’s a watch-sized display priced around €69 and connects to a computer via USB. It turns virtual “status tags” into something physical, displaying availability, emojis, images, GIFs, or even task timers. In essence, it amplifies the small social signals that naturally exist in office life, showing mood, focus level, or work progress in a simple, visual way.
Made long-distance love profitable
Lovebox is a wooden message box that perfectly nails the emotional needs of long-distance couples. Instead of relying on tech-heavy features, it uses a simple but meaningful physical gesture: a little heart on the front of the box that spins when a message arrives. When someone sends an “I miss you” through the app, the heart starts turning. Open the lid, and the message appears inside, turning long-distance affection into a physical moment.
With an average price around $100, Lovebox also generates recurring revenue through add-ons. Sending vibrant photo messages requires a $5 monthly subscription, or users can pay $45 for a lifetime unlock. So far, more than 240,000 units have been sold, pushing total revenue well into eight figures.
The product line has also expanded to include personalized spinning hearts, branded collaborations, themed message packs, and more. There’s even a Couple Naughty Box, designed for intimate interaction, which adds activity dice, Truth-or-Dare games, and a “Scenario of the Day” challenge.
Share light & love, make profit
The Friendship Lamp, designed for long-distance emotional connection. Tap the lamp or use the app, and the paired lamp lights up instantly on the other side. Even if two people are in different cities or different countries, a single touch sends a clear “I’m thinking of you” signal. The app lets users change colors, adjust brightness, and set timers, and the lamp itself comes in wood, glass, and modern minimalist designs that blend into almost any home style.
From a tech and supply-chain angle, this category is much simpler than AI toys. It’s essentially a light, a WiFi module, an app, and a shell. Easy to build and scale. The technology works much like a WiFi smart bulb, just with a system that syncs colors and reactions between two lamps. And that part is patented. But it proves emotions can be visualized or made tangible, unlocking new product opportunities, from wearable vibration devices to AI text-feedback, emotional desk pieces, and simple reactive toys.
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