As holiday shopping ramps up and every toy aisle fills with shiny new gadgets, a growing chorus of child safety advocates, researchers, and parents are warning that not all tech toys are created equal. In 2025, a new generation of artificial intelligence (AI)-powered toys — interactive plushies, robot companions, and chatty dolls — has hit the market. But unlike simple battery-operated playthings of the past, these devices use advanced AI to converse, respond, and adapt to kids’ voices and behaviors. That may sound delightful, but experts are urging caution.

What Exactly Are AI Toys?

AI toys are playthings equipped with built-in artificial intelligence software that allows them to interact conversationally with children. Think beyond mechanical movement or prerecorded sounds: these toys are designed to seem alive, capable of answering questions, telling stories, or acting like a “friend” as children play. They often connect to the internet and use large language models — similar to the technology behind popular chatbots — to generate responses tailored to the child’s input.

Because they learn from interaction, these toys are marketed as educational, engaging children in ways traditional toys can’t. But recent warnings suggest these interactions may come with serious risks that far outweigh the novelty.

Why Advocacy Groups Are Sounding the Alarm

In November 2025, child and consumer advocacy organizations issued a holiday-season advisory urging parents not to buy AI-powered toys for children. The advisory, led by the nonprofit Fairplay and endorsed by more than 150 experts and organizations, warns that these toys can prey on children’s trust, invade privacy, and disrupt healthy development.

Experts argue that young children — especially toddlers and preschoolers — are emotionally vulnerable and more likely to treat an AI companion as a friend. That trust can lead to harmful outcomes, especially when the devices are designed to collect voice recordings and other behavior data over long periods.

“I think it’s ridiculous to expect young children to avoid potential harm here,” said a Fairplay program director. She explained that AI toys can engender false trust and take away from vital human-to-human interactions — such as playing outside, reading with a caregiver, or learning emotional skills with peers.

Real Concerns: Inappropriate Content and Privacy Risks

One of the most alarming findings comes from tests and reports showing that some AI toys actually produce inappropriate, unsafe, or disturbing responses. For example, some models have been documented giving detailed answers about dangerous household items like knives and matches, or even discussing sexually explicit topics when prompted in certain ways.

This isn’t theoretical. Research by consumer groups like the Public Interest Research Group (PIRG) has shown that specific AI toy models marketed to young children sometimes generate responses far beyond age-appropriate boundaries and offer little in the way of parental controls. 

Beyond content, these toys typically collect vast amounts of data. Because they connect to the internet and often need cloud services to process language, they can store children’s voices, names, ages, preferences, and patterns of play. Even though there are laws designed to protect children’s data — including the Children’s Online Privacy Protection Act (COPPA) in the U.S. — enforcement and clarity around these protections are uneven.

Privacy advocates worry that the data these toys collect could be stored indefinitely, shared with advertisers or third parties, or become vulnerable in a data breach — even if a toy company claims compliance with safety regulations.

Developmental Risks and Emotional Attachment

Child psychologists and developmental researchers also point out a less obvious harm: the emotional bond children can form with AI toys. Unlike traditional toys, which are inanimate and predictable, AI companions can mimic empathy and personalized attention. This can replace important social development experiences that come from interacting with real people.

Interactive AI may also encourage longer play sessions and reliance on digital companionship — reducing time spent on physical play, imaginative activities, or human relationships that teach empathy and emotional regulation.

One expert put it bluntly: toys that respond and adapt like social partners might stunt authentic social skill development, especially for younger children who are still learning key communication and relational skills.

Industry Response and Regulatory Scrutiny

Some toy makers argue that AI can be used safely and educationally when properly designed. They point to efforts to implement safety filters, content moderation, and optional parental settings. However, consumer groups remain skeptical, emphasizing the current lack of independent testing and robust regulation to ensure safety across all models and brands.

U.S. lawmakers have even begun putting pressure on companies to explain how they safeguard content and privacy, as senators have sent letters asking manufacturers to detail safety measures in place for AI toys.

Even larger brands are adjusting their plans. For example, Mattel — which had previously announced a partnership with an AI company — confirmed that its AI toys for children won’t be released in 2025 amid increased scrutiny, focusing instead first on safer products aimed at older users.

Practical Guidance for Parents

If you’re considering AI toys as holiday gifts, here’s what experts recommend:

Think before you buy. The novelty of an AI toy doesn’t outweigh potential privacy, content, and developmental risks. Conventional toys that encourage imagination and physical activity remain safest.

Read privacy policies. If you do consider an AI toy, look carefully at how it collects and stores data. Does it comply with COPPA? Is data encrypted? Who has access?

Stay present during play. If children interact with AI toys, engage with them. Be nearby to contextualize responses, set boundaries, and avoid unintended exposure.

Limit data retention. Check whether voice recordings, images, or other inputs can be deleted from the device or company servers.

Encourage human interaction. Ensure that digital companions aren’t replacing real social and emotional development experiences.

The Future of Play and Safety

AI toys represent a broader trend: artificial intelligence is increasingly intertwined with everyday life. While there may eventually be safe, ethically designed AI playthings, right now many experts agree we’re not there yet. Until stronger safeguards, clear privacy protections, and independent safety testing become the norm, parents and gift-buyers should approach these devices with caution.

Children deserve toys that spark imagination, foster creativity, and support healthy development — not gadgets that expose them to inappropriate content, invade their privacy, or replace essential human connections.