Loneliness among young adults has risen over the past years and today around 62% ofyoung adults say they have been or are negatively affected by it (Stickley & Koyangi, 2016). Thiscan lead to depression, anxiety but in the worst case addiction, self-harming or suicidal thoughts.This study examines how AI-based interventions, such as virtual companions, can be designedand implemented to reduce loneliness among young adults. By exploring the possibilities andchallenges of the design and development of creating an AI companion. This study uses asystematic literature study and semi-structured interview based on 20 participants. The semi-structured interview was then analyzed with a thematic analysis. Which then was visualized witha concept map. The findings of the study presents four themes: “Empowering Loneliness Combatwith AI”, “Treading the Thin Line of Human-like AI”, “Irreplaceable Human Connection” and“Nurturing Trust in the AI Ecosystem”. With this knowledge that this study presents, it can helpsupport the knowledge needed to design and develop an AI companion to ease loneliness inyoung adults.