I mean, this seems like another step further.

Having an actual romantic partner provides physical and emotional intimacy.

Hiring a sex worker provides physical intimacy and no emotional intimacy (unless you're paying for that as well, I suppose), but lonely people can project onto the SW and mistake physical intimacy for emotional intimacy. That can be unhealthy.

With this, there's no physical intimacy and a simulated level of barebones interaction, meaning that you're getting the physical release but no actual intimacy and none of the other stuff that comes with any sort of relationship, let alone a romantic one, let alone a healthy and rewarding romantic one.

There's a time and a place for this, but it's a digital sex toy and that's all. AI isn't filling the void of a romantic partner any more than eating a bacon double cheeseburger every day is filling the void of a healthy balanced diet. It keeps the body going, but it doesn't deliver what you and your body need to thrive.

(All of this outside of the context of asexual/aromantic individuals, who may or may not need or want or be comfortable with any level of any of this and for whom this might be the perfect product for all I know.)