This is the perfect way to start on human androids. Cut our teeth on this, perfect this, then use the same knowledge to build humanform robots. The patents we'll accrue make it worth it on its own!
Best part is you wouldn't NEED to take them for a walk. No need to clean up their leavings. And if you wanted that part of the experience, it could be fertilizer, clean, specifically designed to help the local plants. We could make a mint selling it, plus, we'd ensure no pesky odour.
Or even better, what the dog simulates as leavings, could be bird food or some such! Each packaged drop, would feed the local pigeons, self-cleanup!
And dog treats! We'd have them beg for treats, but their innards will only accept treats made, and licensed specifically for the dog. In fact, without our specific dog food, the animal will "wither" and die!
We'll make a killing!
Johnson, get the design team in here pronto!
(Applies to YC, 12 months later 'mieses' sees such creations in Walmart)
NOTE: the above was a Google project, but once it hit the shelves, and with record breaking sales, Google cancelled it for inexplicable reasons.
Humans pay more attention to their dogs than to humans, for obvious reasons.
We would not mind a human that acted like an AI - the artificiality simplifies the relationship and is a positive feature. With dogs, we notice the slightest detail and would be bothered by AI limitations. We might act the same way towards music and art. We would spend hours listening to an album or looking at a painting while trying our best to ignore the people around us. The posters that describe the dog "experience" in a simple mechanistic way have probably never owned a dog.
Another way of looking at it - we have to deal with humans. We choose to deal with a dog. Therefore the dog AI has more to live up to.