It reminds me of an episode of Star Trek TNG, if memory serves correct there were loads of episodes about a crew member falling for a hologram dec character.
Given that there’s a loneliness epidemic I believe tech like this could have a wide impact on peoples mental health.
I stronger believe AI should be devoid of any personality and strictly return data/information then frame its responses as if you’re speaking to another human.
These models are still stochastic and very good at picking up nuances in human speech. It may be simply unlikely to go off the rails like that or (more terrifyingly) it might pick up on some character trait or affectation.
Honestly I'm appalled by the lack of safety culture here. "My plane killed only 1% of pilots" and variations thereof is not an excuse in aerospace, but it seems perfectly acceptable in AI. Even though the potential consequences are more catastrophic (from mass psychosis to total human extinction if they achieve their AGI).
We just aren't comfortable with the idea that all of us are fragile, and when we think we could endure a situation that would induce self-harm in others, we are likely wrong.