I stick to “all right” and avoid using “alright,” but it’s really just a matter of personal choice. For instance, when I edit manuscripts that consistently use “alright,” I now let it be without comment. I had noticed over the years that I’d just unnecessarily roil the feathers of writers whenever I insisted on replacing their “alright” with my “all right.” Still, your friend may have a point in dissuading you from using “alright,” for it’s a usage that has remained contentious over the years.
My online Merriam Webster’s 11th Collegiate Dictionary has this to say about the matter: “Since the early 20th century some critics have insisted ‘alright is wrong,’ but it has its defenders and its users. It is less frequent than all right but remains in common use especially in journalistic and business publications. It is quite common in fictional dialogue, and is used occasionally in other writing.”
