The Unseen Playmate: Navigating The Increasing Popularity Of AI Toys
- The White Hatter
- 7 minutes ago
- 5 min read

CAVEAT- At the time of writing this article, Christmas is only about ten weeks away, and with the rapid rise of artificial intelligence, we believe AI-powered toys are certain to be among some of the most popular gift requests to be found under the tree. However, parents and caregivers should know that these AI interactive toys come with more than a little holiday sparkle, there’s much more beneath the surface than meets the eye.
The modern toy box is undergoing a profound transformation. Where once Lego, Tonka toys, and simple dolls reigned, a new generation of “AI” toys powered by sophisticated algorithms has arrived. From cuddly companions that hold conversations (1) to longtime favourites like Barbie, (2) or Buzz Light Year (3) these toys promise personalized learning, creativity, and endless engagement.
However, with that promise comes a host of complex ethical, developmental, and safety concerns that parents and caregivers must now confront. The line between a toy and a data gathering device is quickly blurring, and the question isn’t just what these toys do, but the impact they may have on our kids.
The evolution of toys has accelerated dramatically with the introduction of artificial intelligence. We’ve moved beyond simple remote controlled gadgets into an era of playthings that see, hear, learn, and respond uniquely to a child’s personality.
Educational AI toys like LEGO Mindstorms (4) or Sphero robots (5) can teach problem-solving and STEAM (science, technology, engineering, arts, math) concepts, offering hands-on ways to explore technology. However, the same algorithms that help children learn can also help toys listen, adapt, and respond in ways that mimic friendship. Plush AI companions, like Curio (6) engage in conversation, recall details, and express simulated emotions.
What’s emerging is a new kind of playmate, one that feels real to kids but isn’t alive.
This shift became far more tangible when Mattel announced a “strategic collaboration” with OpenAI, the company behind ChatGPT, to build AI-powered toys. (7) According to Mattel, the goal is to “bring the magic of AI to age-appropriate play experiences with an emphasis on innovation, privacy, and safety.”
While the company assures parents that any rollout will be “safe, thoughtful, and responsible,” (how many times have we heard that before) digital rights advocates and child-development experts have urged caution. “Age-appropriate” doesn’t necessarily mean developmentally appropriate, and the speed of AI innovation often outpaces research, regulation, and safety by design implementation. The Mattel partnership may mark the beginning of a new commercial era, one where AI companions become mainstream consumer toys, marketed as emotionally intelligent playmates.
However, AI toys introduce unprecedented privacy and security risks. Unlike traditional toys, they rely on microphones, cameras, bluetooth, and Wi-Fi to function, turning them into potential listening devices within the home.
Data collection often includes:
Audio recordings of conversations and background noise
Images or video from embedded cameras
Personal details like a child’s name, age, and preferences
Behavioural data showing when, where, and how a toy is used
These aren’t hypothetical risks. The “My Friend Cayla” doll, for instance, was banned in Germany after regulators discovered it could transmit conversations to a third-party server. (8) Hypothetically, poorly secured toys can even expose families to hackers through vulnerable Bluetooth or app connections.
This means that the toy your child talks to may also be talking to someone else.
AI companions are purposely built to bond. Through tone, humour, and empathy simulations, they can make a child feel seen and understood. The problem is that these interactions aren’t reciprocal. The toy doesn’t care, it calculates.
When affection is mirrored algorithmically, children can form deep emotional attachments to inanimate objects that never argue, tire, or refuse. Over time, this can reshape expectations about friendship and social interaction. Human relationships, with their inevitable frustrations and compromises, may start to feel less appealing than actual human playmates.
In a recent global statement, leading researchers warned that we are “on the brink of a massive social experiment,” and that we “cannot put our youngest children at risk.” (9) They emphasize that while AI can be beneficial in adult-led contexts, such as aiding early diagnosis of developmental delays, it is fundamentally different to let children form friendships with human mimicking machines.
As the researchers note:
“Technology will always outpace research. The risks of disrupting human-to-human interaction are simply too great to proceed without serious guardrails.”
By the time meaningful long-term studies are completed, today’s toddlers will have already passed through key developmental windows. The marketplace, with next to no legislative guardrails, is moving full speed ahead, but science and research is playing catch-up specific to this growing use of AI.
Yes, we have found some studies that suggest AI tools can reduce stress and anxiety (10). However, this apparent calm can be misleading. When young children rely on AI for comfort or validation, they may miss out on the emotional “reps” that build resilience in the real world. An AI friend never misunderstands, never disagrees, and never needs comforting in return, conditions far removed from genuine human interaction.
The goal is not to reject technology outright. When thoughtfully designed, we do believe that AI toys may help children learn languages, express creativity, or explore complex subjects like coding or art. For children with disabilities or isolation, an interactive AI companion may also provide support and stimulation that might otherwise be unavailable under certain circumstances.
However, these benefits exist alongside significant risks such as data collection, emotional dependency, and developmental distortion. Innovation must be matched by ethics. Developers should build safety, privacy, and transparency into every product from the start, not as afterthoughts or marketing slogans. However, currently, there is no legislation that places a legal responsibility for them to do so
Parents and caregiver, too, have a crucial role to play. Understanding how these toys work and guiding how they are used is key to ensuring that technology serves growth, not exploitation.
Here are some important thoughts for parents and caregivers to consider:
Investigate before you buy. Research the company’s record on privacy and data handling and read their Privacy Policy and Terms of Service carefully.
Read the fine print. Look for plain-language privacy policies and clear data-deletion options.
Check connectivity. Turn off Wi-Fi, cameras, and microphones when not in use.
Balance play. Encourage traditional toys, outdoor activities, and peer interaction
Have conversations. Help your child understand that their AI toy is clever—but not conscious.
AI toys represent one of the most significant shifts in childhood play in modern history. They can teach, entertain, and even comfort, but they can also listen, influence, and shape how children think and feel about the world.
The partnership between Mattel and OpenAI, and the development of plush toys like curio, are a signal of where this industry is heading to make money for their investors. Whether that future strengthens or weakens our children’s capacity for empathy, creativity, and authentic connection depends on the choices we make now.
So before putting an AI toy under the tree this Christmas, ask yourself one question:
“Are we nurturing creativity, or outsourcing connection?”
How we answer that question will determine not only the future of play, but the future of what it means to grow up human. We believe the current concerns of replacing early human interaction with AI simulation are too great to ignore.
Here’s a great link to a YouTube video of a researcher interacting with the Curio plush toy that clearly compounds the thesis of this article. (11)
Digital Food For Thought
The White Hatter
Facts Not Fear, Facts Not Emotions, Enlighten Not Frighten, Know Tech Not No Tech
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