Abstract
Companion chatbots offer a potential solution to the growing epidemic of loneliness, but their impact on users' psychosocial well-being remains poorly understood, raising critical ethical questions about their deployment and design. This study presents a large-scale survey (n = 404) of regular users of companion chatbots, investigating the relationship between chatbot usage and loneliness. We develop a model explaining approximately 50% of variance in loneliness; while usage does not directly predict loneliness, we identify factors including neuroticism, social network size, and problematic use. Through cluster analysis and mixed-methods thematic analysis combining manual coding with automated theme extraction, we identify seven distinct user profiles demonstrating that companion chatbots can either enhance or potentially harm psychological well-being depending on user characteristics. Different usage patterns can lead to markedly different outcomes, with some users experiencing enhanced social confidence while others risk further isolation. These findings have significant implications for responsible AI development, suggesting that one-size-fits-all approaches to AI companionship may be ethically problematic. Our work contributes to the ongoing dialogue about the role of AI in social and emotional support, offering insights for developing more targeted and ethical approaches to AI companionship that complement rather than replace human connections.