AI toys are here. Don't trust them

The concerns that have plagued AI systems elsewhere don't disappear just because the technology is stuffed into a plush bear

ByJackie Snow

Photo by Ying Tang/NurPhoto via Getty Images

The AI gift economy is booming. Smart AI toys alone are valued at nearly $35 billion globally and projected to hit $270 billion by 2035, with China accounting for roughly 40% of that growth. Major retailers like Walmart and Costco are stocking AI companions on their shelves. Even legacy toymakers like Mattel have partnered with OpenAI to bring AI into children's playrooms. The pitch is obvious. AI has already infiltrated our phones, our jobs, our daily routines. Why not our gift-giving too? These devices promise to learn, adapt, and engage in ways traditional presents never could.

But the concerns that have plagued AI systems elsewhere don't disappear just because the technology is stuffed into a plush bear. Privacy vulnerabilities, harmful content, psychological risks, all the same problems that have sparked lawsuits and regulatory scrutiny for chatbots and AI assistants are now landing under the Christmas tree, wrapped in cheerful packaging and marketed to the most vulnerable users.

These aren't obscure products from fly-by-night manufacturers. Many run on mainstream AI models from companies like OpenAI — the same technology powering ChatGPT, which explicitly says it's not appropriate for young........

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