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Is AI in Toys a Threat to Children’s Privacy and Emotional Well-being?

June 26, 2025

Mattel, a venerable name in the toy world, is teaming up with OpenAI—the brains behind ChatGPT—to bring generative AI into its product lineup. This move could change how children interact with toys, though the technology is aimed at older kids and families.

If you’ve ever marveled at how toys sparked your imagination, you might recall how, in the 1960s, Mattel’s Chatty Cathy offered playful expressions of affection. Then came Teddy Ruxpin in the 1980s and interactive toys like Furbies and Tamagotchis during the 1990s, each building a bridge between inanimate playthings and a child’s world of emotion. In 2015, Hello Barbie took things a step further by using cloud-based AI, though it wasn’t long before privacy concerns were raised.

The latest twist is the integration of generative AI, which enables toys to engage in fluid, seemingly personalised conversations. These responses can feel genuine and even comforting, yet they also blur the line between authentic connection and programmed interaction. It naturally raises questions about the impact on a child’s emotional well-being and the long-term implications for privacy.

Privacy remains a pressing issue. Children often lack the understanding of how their data is processed, and many parents, myself included, have sometimes clicked through online terms without a second thought. As these smart toys learn from a child’s moods, preferences, and vulnerabilities, they gradually build detailed data profiles that persist well into adulthood. A recent UK study highlighted that 80% of parents worry about who might have access to this data, and more than half believe that toy companies should alert authorities if they spot signs of distress.

While some see real educational potential in AI-enhanced play, recent research shows that 75% of parents fear an over-attachment to AI companions, with 57% feeling it’s inappropriate for children to confide in them. These insights are prompting calls for smarter design choices: less dependency, enhanced AI literacy, and stronger data protection measures can help ensure these technologies work in our children’s best interests.

Regulators in the UK and EU are already updating their rules to keep pace with these developments, and bodies like the IEEE are busy drafting ethical standards to tackle potential harms. If you’re considering these innovations for your child, it’s worth weighing whether they truly serve your family’s needs or merely cater to corporate ambitions. Mattel, for its part, has chosen to decline commenting further on the matter.

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