AI-powered robotic pets have the potential to transform therapy and mental health care by providing privacy, immediate reactions to crises, and companionship to alleviate loneliness. These synthetic forms of animal-assisted therapy could be integrated with wearable technology and remote monitoring tools to offer personalized treatment plans. However, the adoption of AI therapy pets faces challenges due to cultural perceptions, cost, data privacy, and technical infrastructure. The technology must exhibit emotional intelligence and offer the right response to be effective. Strict privacy measures and attention to ethical concerns are needed to ensure public trust and prevent over-reliance on AI pets.