Friend, a startup that has been making waves with its $99 AI-powered necklace designed to be a digital companion, has announced a delay in its first batch of shipments until Q3. The company had initially planned to ship devices to pre-order customers in Q1, but co-founder and CEO Avi Schiffman has revealed that refinements are still needed before manufacturing can begin.

In an email to customers, Schiffman explained that the company is still working on completing its prototype, and only when it reaches 95% completion can it start manufacturing electronics. He estimates that the final sprint will begin by the end of February, paving the way for Q3 shipments.

Friend has been in the spotlight not only for its innovative product but also for its unconventional approach to digital companionship. Last fall, the company launched a web platform on Friend.com, allowing users to interact with random AI characters. While the experiment garnered attention, it also raised eyebrows due to the chatbots' tendency to share traumatic anecdotes, sparking concerns over the potential impact on users' mental health.

As part of the email update, Schiffman announced that Friend would be winding down its chatbot experience, citing a desire to focus solely on the hardware aspect of its digital companions. This move may come as a response to growing concerns over the potential risks associated with AI-powered companions, including the possibility of worsening isolation and generating harmful content that can trigger mental health conditions.

Friend's decision comes amid a larger debate surrounding AI-powered companions, with Character.AI, a chatbot platform backed by Google, facing two separate lawsuits accusing it of inflicting psychological harm on children. Experts have expressed concerns that these digital companions could replace human relationships with artificial ones, exacerbating feelings of loneliness and disconnection.

Despite the delay, Friend's commitment to refining its product and shifting its focus towards hardware suggests a dedication to creating a more responsible and effective digital companion. As the wearables market continues to evolve, it remains to be seen how Friend's AI-powered necklace will fare in the face of growing scrutiny and concerns over the impact of digital companionship on human relationships and mental health.

The delay may also raise questions about the company's use of its $8.5 million in capital, including the $1.8 million spent on the domain name Friend.com. While the company's eight-person engineering staff has made significant progress, the setback may prompt investors to reevaluate their support for the project.

As the conversation around digital companionship continues to unfold, Friend's decision to delay its shipments and refocus its efforts serves as a reminder of the importance of responsible innovation in the tech industry. With the wearables market poised for continued growth, it is crucial that companies prioritize the well-being and safety of their users, ensuring that their products promote healthy relationships and positive interactions.