This article critically examines the paradigm shift from the attention economy to the intimacy economy-a market system where personal and emotional data are exchanged for customized experiences that cater to individual emotional and psychological needs. It explores how AI transforms these personal and emotional inputs into services, thereby raising essential questions about the authenticity of digital interactions and the potential commodification of intimate experiences. The study delineates the roles of human-computer interaction and AI in deepening personal connections, significantly impacting emotional dynamics, and underscores AI's role in various applications, from healthcare to grief tech, highlighting both enhancements in emotional connections and potential disruptions to genuine human interactions. An AI-mediated framework (AMIE) is introduced to assess how AI reshapes these connections and the overall digital society through personalized interactions. This framework explores the interplay between human emotions and AI-generated responses within the new Avatar Sphere, emphasizing the necessity for regulatory measures to safeguard digital identities, recognize emotional data as intellectual property, and maintain system transparency. It highlights the critical need for maintaining genuine human interactions and advocates for context-aware consent, continuous monitoring, and cross-cultural considerations to foster ethical AI practices. Leveraging blockchain technology and decentralized autonomous organizations, the framework proposes methods to enhance individual control over emotional data, mitigating the commodification risks. The findings contribute to ongoing discussions on AI ethics, digital privacy, and the future of human-AI interactions, providing valuable insights for cultivating a responsible intimacy economy.