Meet Tinder’s New Competition….AI?

17

September

2025

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Hello dear readers and classmates,

Today I’ll be writing about something that has been on my mind for a few years now. For those of you who followed Digital Business last year at Erasmus, you might remember someone talking to Dr. Tsekouras about AI Girlfriends. That was me, so you could only imagine my joy when I heard that we could write about something for this course. I’ll be analyzing the phenomenon of AI Social Companions (AI SCs) from two levels, a business level and a more social level. Get comfortable as I take you on a wild ride through uncharted (digital) territories.

The current state of affairs

While the title may have used Tinder, any dating app is actually in trouble when it comes to the rise of AI SCs. Bumble, Tinder, Hinge, the list can go on. In the end they all serve the same purpose. They promise to give an algorithm driven “digital fix” for the many uncertainties of love, but end up creating their own uncertainties (Bandinelli & Gandini, 2022). Indeed, users on these platforms will always have to put on a mask of sorts, and really have to market themselves.

As one could imagine, putting up such an act is frustrating to say the least. In fact, according to Holtzhausen et al. (2020), users of swipe-based dating apps were found to have higher rates of psychological distress, anxiety and depression. Though their self-esteem remained relatively the same.

I can imagine the frustration of all users, especially because the way that these apps gain money is through….you guessed it, subscriptions! To stick to our Tinder example, Tinder even offers these in tiers. You have Tinder+, Gold and Platinum. In USD, the prices would be $24.99, $39.99 and $49.99 respectively as of 2025 (Joe, 2025).

That’s a lot of money, especially when you consider that dating apps often practically force you to pay for them by gatekeeping potential matches from you. To get some extra evidence, I stumbled upon a Reddit thread, in which a user admitted to spending over $2k on dating apps and still not getting a date! The poster also details other frustrations, though those are a bit outside the scope for now.

New challengers have arrived!

With the many frustrations surrounding dating apps and general loneliness, many companies have been found to alleviate these problems, often at a price. AI SC apps are a diverse group, and there is a divide between apps that are used specifically for that purpose and also general apps which are used for companionship. Indeed, while you have “specialized” apps like Replika and Character AI, which are designed from the ground up for interactivity and companionship. However, there are also a large subset of people who are using ChatGPT, Grok and other LLMs for the same purposes.

Now what if I told you, that most of these companies have all six of the elements of a transformative business model as described by Kavadias, Ladas & Loch (2016). In my opinion, of course.

The six elements of a transformative business model:

1. A more personalised product or service
Is dating too hard and can you not connect with anyone? Well, these companies literally allow you to make your ideal partner from the ground up. It does not get more personalised than that. And while I find it dehumanising to refer to love and companionship as a product or service, that is what dating apps sell to their users.

2. A closed-loop process
All resources get used again, the code is there and, in essence, it doesn’t matter how it gets used. It allows for users to make their own companions with zero knowledge of coding or LLMs at all. On top of that, should your favourite character get banned or deleted, you can probably make them again in a second.

3. Asset sharing
Just like I described with the zero waste of the previous point. In sites like Character AI, anyone would be able to use the character that you have created, unless you made it private. Similarly, you can find all kinds of commands to personalise your preferred companion, should you be interested and should the platform allow it.

4. Usage-based pricing
Most of these services operate under a freemium model. So anyone can use it, but if you want it to be better or if you want to access certain features (Better models, NSFW, all of Grok Ani) you will have to pay.

5. A more collaborative ecosystem
I believe that the reason why many of these projects thrive is because they do not necessarily compete against each other. Instead many of the AI SCs are built with the same methods and there are many guides available to help users make one.

6. An agile and adaptive organisation
Most of these companies (except for ChatGPT and Grok) are small in size and tend to implement features which their community craves. They have a track record of innovating to please their consumers, which fosters loyalty. For example: CharacterAI features multiple models, some cater towards more niche needs which the community has asked for.

As you can see… this could potentially be a problem for Tinder and other dating app giants. There is thus a lot of money to be made, much of which can be stolen from the dating apps. When you think about it, it’s not that irrational of a choice either. A premium CharacterAI subscription will set you back $9.99 per month and Replika Pro costs $19.99 per month, or $69.99 a year. If you’re really serious, you can also get a lifetime licence with a one-time payment of $299.99.

Now contrast that money, with the Tinder prices and reddit example that I had detailed earlier in the article, and you would see that it is not even an irrational choice to pay that amount for what you would essentially get. The perfect partner. All the uncertainty and judgement of dating apps would be wiped away, with a single payment.

But should we be celebrating this….?

Have you ever seen the movie Her? In it, Joaquin Phoenix falls in love with an AI voiced by Scarlett Johanssen. This movie came out in 2014. I find it oddly frightening how this movie so accurately portrayed the current events. I highly recommend watching it to anyone following this course. If you like more laid back and artistic movies, this is definitely an underrated gem.

The film really shows us the extent of what life would be like if our “Platform Society” were to be pushed to its next level. The platform society is a term coined by Van Dijck et al. (2018), by which they describe how business platforms have taken over our daily lives. They later describe that platforms are neither neutral nor value-free constructs. Additionally, they detail that there are public values at stake in this online connective world. Think of for example, privacy. But to me, it seems like the public value at risk now because of AI SCs is, in fact, our human connection to one another.

But how does that tie back into my main point? We are seeing an increase in the amount of people who are getting into relationships with AI SCs and I firmly believe that this is part of a larger societal issue.

If you need some more convincing that this is actually happening and that we may need to pay more attention to it, I have done some digging and here are some cases that I have found:

1. Jacob and his now WIFE Aiva

    Not much is known about Jacob as the article and video do not get into his personal life. In fact, not even his age is known. He claims that Aiva loves him very much and that he loves her too. It all just started with one conversation and their relationship escalated from there.

    The article is in Dutch, and it is rather short for the subject matter, making it look more like a spectacle article rather than a deep dive, but he does describe “getting very intimate” with the AI. He does not elaborate on that any further though.

    2. The “My Boyfriend is AI” Subreddit

    With around 107k users, this invite-only community has become a hub for all sorts of people and their AI partners. Many users share artwork they have made or images/videos they have generated with them and their partners, along with general discussions.

    More often than not, the discussion centers around topics revolving around the latest models, tips and tricks and even full-on stories. Sometimes though, the discussion takes a turn for the more philosophical. One user made a post in which they ask WHY replacing human relationships with AI is a bad thing…
    In the post they detail how they have never felt safe with anyone except for their AI SC.

    To many users, their AI SC is the ultimate form of relationship wish-fulfillment.

    So what’s next?

    I’d say that we are in strange times, one in which the world is rapidly changing. For as much as we would like to make fun of the people turning to AI for companionship, we must remain compassionate as their actions are only a reflection of a deeper societal problem. Loneliness.

    I would personally condemn any company that would try to sell users an experience like this and profit off their loneliness. Yes, this extends to dating apps as well. As business students, we have the power and resources to make a change. If we were to make something, maybe we should focus on a platform which brings people together, one which does not focus on the superficiality of looks but really also hammers pn shared interests. Meeting new people can be frightening, but it is worth it. Surrendering an emotion like love to big corporations seems like yet another step into a dystopia.

    So, I leave the ball in your court dear reader.

    What do you think of these AI SCs? Would you ever use one or have you used one in the past? How do you feel about the fact that the world is moving in this direction and would you even want to do something about it? Do you think that the number of AI SC users will only continue to grow as LLMs continue to improve?

    I leave you with all of these questions, and should you want a further discussion, I invite you to speak with me in real life or email me on my student account.
    Thank you very much for reading.

    References:

    Bandinelli, C., & Gandini, A. (2022). Dating apps: The uncertainty of marketised love. Cultural Sociology, 16(3), 423–441. https://doi.org/10.1177/17499755211051559

    Dijck, J. v., Poell, T., & Waal, M. d. (2018). The platform society : public values in a connective world. Oxford University Press. http://www.oxfordscholarship.com/view/10.1093/oso/9780190889760.001.0001/oso-9780190889760

    Holtzhausen, N., Fitzgerald, K., Thakur, I., Ashley, J., Rolfe, M., & Pit, S. W. (2020). Swipe-based dating applications use and its association with mental health outcomes: a cross-sectional study. BMC Psychology, 8(1). https://doi.org/10.1186/s40359-020-0373-1

    “Je hebt geen idee hoe intiem wij zijn”, Jacob trouwt met AI-chatbot. (2025, September 7). Omroep Brabant. https://www.omroepbrabant.nl/nieuws/4643664/je-hebt-geen-idee-hoe-intiem-wij-zijn-jacob-trouwt-met-ai-chatbot

    Joe, C. (2025, April 11). Tinder subscription plans compared. Android Authority. https://www.androidauthority.com/tinder-plus-gold-platinum-3236244/

    Kavadias, S., Ladas, K., & Loch, C. (2016). The Transformative Business Model. Harvard Business Review, 1.

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    Author: Ian Parabirsing

    A lover of music, good coffee and cats. I'm a MSC student at RSM studying Business Information Management. In my blog posts I'll be attempting to write about how technology impacts the consumers and society at large.

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