Anthropomorphism in AI occurs due to human nature, leading us to project human qualities onto AI interactions.As AI interacts in human-like ways, users may anthropomorphize it, affecting their expectations and vulnerability to exploitation.Anthropomorphism in AI is expected to increase with the influence of factors like the rise of Gen Alpha and societal changes.Different degrees of AI anthropomorphism exist, including Courtesy, Reinforcement, Role Play, and Companionship.The use of AI companionship for emotional needs may lead to potential risks and ethical considerations.Designing AI with ethical considerations, setting boundaries, and avoiding manipulation is crucial for long-term benefits.Mental models impact user interactions with AI, and addressing dishonest anthropomorphism is a regulatory and ethical challenge.Utilizing moral frameworks like Kantianism can guide the development and implementation of ethical AI practices.Future research should focus on real-life testing of AI interactions and integrating ethical considerations into design processes.AI's impact on society and individuals necessitates regulatory guidance and responsible AI development by tech companies.