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Mel AI demonstrated AI characters that can talk, react, and respond to visual context in real time via video, moving beyond text-based character chat.
Character.AI co-founder Noam Shazeir reports a 45% increase in user dependency, with active users spending 2 hours daily on average, up 15% from last quarter. Studies show only 5% of users quit even after negative interactions, highlighting the need for better safety features and ethical AI regulation.