main antagonist of toy story 5In theaters this summer is a green, frog-shaped children’s tablet named LilyPad, a genius new villain for the beloved Pixar franchise. But if Pixar was more focused on the ground, it could have used AI children’s toys instead.
AI toys appear to be everywhere, marketed online as friendly companions for children under the age of three, and they are still a largely unregulated category. Creating an AI companion is easier than ever thanks to the Model Developer Program and Vibe Coding. In 2026, they have become the trend of inexpensive trinkets in the halls of trade shows such as CES, MWC and the Hong Kong Toy and Game Fair. By October 2025, there were more than 1,500 AI toy companies registered in China, and Huawei’s smart Hanhan plush toy sold 10,000 units in China in its first week. Sharp put its Pokemon talking AI toy on sale in Japan this April.
But if you browse AI toys on Amazon, you’ll mostly find specialty players like Foltoy, Alilo, Miriat, and Miko, the last of which claims to have sold over 700,000 units.
Consumer groups argue that AI toys in the form of cuddly teddy bears, bunnies, sunflowers, creatures and kid-friendly “robots” need more guardrails and stricter regulations. When tested by the Public Interest Research Group’s New Economy team, FollowToy’s Kumma Bear, powered by OpenAI’s GPT-4O, gave instructions on how to light a match and find a knife, and discussed sex and drugs. Allilo’s smart AI bunny talked about leather floggers and “impact play,” and in tests for NBC News, Myriot’s Miilu toy talked about the Chinese Communist Party.
Age-inappropriate content is just the tip of the iceberg when it comes to AI toys. We’re starting to see real research on the potential social effects on children. There’s a problem when the technology isn’t working, such as railing against allowing it to talk about BDSM, but RJ Cross, director of the Our Online Lives program at the consumer advocacy group PIRG, says that can be fixed. “Problems arise when technology becomes too good, like ‘I’m going to be your best friend,'” she says. Like Gabo from AI toy maker Curio. There are real social development issues to consider with these types of toys, even though these toy companies advertise their products as superior, “screen-free play.”
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