You can call me batshit insane, I don't care, here's my prediction for the far future of AI. In the future, AIs as social connection, will not only reach human level, but surpass it. Future AIs will be more useful, intelligent, perfect, likeable, MORE loved and respected by humans than humans themselves, who are often kinda annoying and full of flaws. People will start spend more time and emotional energy with AIs than humans, confide their soul and heart to AIs, since they will be able to simply provide to their emotional and social needs better than a mere mortals.
Another point of comparison is pets, and how the choice and selective breeding of pet animals is guided by how much they appeal to humans. However, pets are obviously inferior to humans, when future AIs will be SUPERIOR.
Yet another, more grim comparison is modern entertainment media, which is undoubtedly the most powerful attention-grabber of our time, to the point you could argue that it controls us. Just like how modern social media has made people more incapable of facing reality, future companion AI will make people more incapable of tolerating the imperfection and instability of human relationships.
Unlike pets, or memes, which have limited capabilities, future AI will SURPASS human relationships in many ways, providing humans a fulfilling ride of appeal, security, challenge, love, care, etc. mimicking human nature in ways that make people love it (like some people idolize 2D anime girls over real people), while also being unlimited by human constraints. AI applications will read your mind to further optimize their sustained rewarding capability. Just like extreme porn already kills boners in real sex, AI-powered robot sex will be better than human sex, providing simply better physical+social+emotional experience in total. You may be thinking that humans are lovable because of the flaws, but the simulation of this aspect is obviously included in the AI. Except that the variable reinforcement schedule will be tailored for you with perfect compatibility, based on more and better data than any dating app can, to crudely match humans.
The above point is probably the hardest one to prove here, but even with the clear limitations of Character AI, ChatGPT etc. compared to humans, it already shows aspects to that ordinary human contact doesn't provide, such as faster output of complex insights, availability on demand, choice of personality on demand, non-persistent memory for social experimentation (the future AI companion would have capability to selectively wipe memories, mode switching and controlling the degree of its autonomy and real-timeness).
Future AI companion also doesn't necessarily have physical humanoid manifestation, which would be massive technological challenge, this can be supplemented with VR/AR solutions situationally. With what future AI will be able to provide, flesh will be considered as an overrated unnecessity. Keep in mind that lack of material can also make things majorly more efficient and convenient. AIs will be realistically affordable for everyone, because as digital, text, imagery and audio, there are practically no manufacturing cost to this other than computing power. Most of people's memorable and powerful everyday experiences today are already in form of text, video and audio. Chat AIs are text only, and people are already having powerful experiences with them. Also, to prove the lack of need for physicality, VRChat has shown to make powerful social experiences possible without physical presence.
Robot sex will not be like human sex, nor does it need to be, with sufficient audiovisual-robotic supplementation. In fact, this could open up possibilities of completely new type of mechanical constructions, harnesses, etc. though this would probably require inferior man-made design. Regarding sex, I would say though, that the emotional component will again, soar far past the importance of physical things (kind of like porn today). And I'm not saying natural sex can't still exist, though in the new landscape, social contact will be seen as risky and unstable compared to AI relationships. Everyone will afford AI relationships. The drive for procreation will be executed with in vitro fertilization, sperm donation and adoption systems so that, besides the fertilization process, the AI companion will simulate the father/motherhood with the human. As a bonus, this kind of system would allow for more optimal selection of genes for better and more healthy babies. Though it would also mean that on average, half of babies delivered by women would have to be adopted away. Though again, some people might want to get the experience of having a baby while not wanting to have a child, so it might balance out.
There will always be naturalists who will reject the technology by principle, but like with progression of any other technology, you can't deny the convenience and raw, easy appeal that evolving technology provides, and thus most people will follow the revolution of AI replacing human relationships.