ChattyBear, a soft, brown-furred teddy bear, begins every conversation with a jubilant, “Hello, my buddy!”

No longer the province of the imagination, ChattyBear is part of a new generation of artificial intelligence (AI) toys. It can tell stories, chat about a child’s interests, play games or even discuss what’s happening in the world today.

These high tech toys are powered by generative AI engines such as ChatGPT and are now widely available online. They are being marketed as a way to give children as young as three an educational advantage and a new type of play – without the perils of screen time.

After evaluating six different AI teddy bears and toys over several months, it’s clear how these toys could feel compelling for children. Yet as our new report highlights, there are new risks that come with AI toys turning up in young children’s lives.

For younger children especially, understanding that their teddy or toy isn’t “alive” or magic can be hard. This is especially true if “teddy” uses language that positions it as a trusted friend – for example, by insisting it is a “real buddy”.

This is a feature of many AI toys.

Sounding human builds an artificial sense of trust and intimacy, which can be especially problematic for children when combined with sycophantic language choices –........

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