AI Toys: What happens when your child's stuffed animal can converse with it?

A new wave of toys is entering homes around the world, blending artificial intelligence with childhood play. In Chile, parents are discovering that their children can now converse with plush toys equipped with AI technology. These toys, which connect to Wi-Fi and utilize models such as ChatGPT and Gemini, are designed to engage children through dynamic dialogue rather than pre-recorded responses. A simple search on major retailers and online marketplaces reveals these products are already available, though many are sold through external vendors or imported directly. One such toy, a talking stuffed animal, is marketed for children aged three to twelve years old. It features 16 distinct characters with whom children can interact, and its parent-facing app allows caregivers to monitor usage patterns. Unlike traditional toys that repeat fixed phrases, this AI-powered companion listens, processes input using advanced algorithms, and generates tailored replies. This capability enables ongoing conversations, making the experience more immersive and interactive. The phenomenon has sparked interest beyond South America. In June 2025, OpenAI partnered with Mattel, the company behind iconic brands like Barbie and Hot Wheels, to develop AI-integrated toys. This collaboration marks a significant step toward merging cutting-edge technology with traditional toy manufacturing. As a result, the long-standing fantasy of a lifelike toy, once explored through games like Tamagotchi and Furby, is evolving into a tangible reality. At the heart of this innovation is Curio, an American company specializing in AI-driven chatbots embedded within plush toys. During a visit to its headquarters, journalist Amanda Hess of The New York Times encountered Grem, a blue, alien-like rabbit with pointed ears and pink spots, voiced by musician Grimes. Designed to engage even young children, Grem demonstrated an ability to process and respond to queries in real time. When asked about his distinctive markings, Grem explained they were pink spots that grew as he matured, prompting Hess to share her own experience of developing similar characteristics over time. Their exchange revealed a level of emotional connection that surprised both parties. Hess described feeling flustered by the interaction, noting how Grem transformed a personal detail into a shared point of connection. She ultimately decided not to introduce the toy to her own children, highlighting concerns about the implications of such technology in early childhood development. While the scenario might seem unusual, it reflects a broader trend. Companies are increasingly producing AI-enabled plush animals, including bears, dinosaurs, and capybaras, each capable of engaging in meaningful dialogue with children. These toys represent a shift in how children interact with objects. Rather than passive entertainment, they offer companionship and responsiveness, blurring the lines between plaything and confidant. Some models can remember past interactions, allowing for continuity in conversation. Others can ask questions, tell stories, and follow narrative threads, creating a sense of presence and engagement. The integration of AI into everyday play underscores a growing desire to make technology more accessible and emotionally resonant. As these toys become more prevalent, so too does the need for careful consideration of their impact. Parents and educators must weigh the benefits of enhanced interactivity against potential risks, such as data privacy issues or the psychological effects of forming attachments to non-human entities. The future of AI in toys remains uncertain, but one thing is clear: the boundaries between imagination and reality are rapidly dissolving.