Would people want this especially if their grandchildren rarely visit/talk to them?
This was covered in an episode of Star Trek the Next Generation [1] Geordi falls in love with an AI character but then meets her in real life and things get awkward real fast.
You may be onto something though. There are already people that have "AI" girlfriends. There is probably a market for people that wish they lived with particular celebrities and other fictional characters. Maybe someone would want Thor or Loki as a room-mate? A fictional character would not have preexisting real memories with the person.
Or perhaps this could be used for people that have lost loved ones to help them cope with the loss and perhaps add some closure even if it is not real. Therapist in a box I only suggest this one to make the corporate lawyers cringe.
[1] - https://www.youtube.com/watch?v=r9H8hWBaQ5k [video][2 mins]