AI toys marketed to children as young as three remain largely unregulated, with researchers identifying concerns about conversational turn-taking, social development, and addictive patterns.

By October 2025, over 1,500 AI toy companies were registered in China; Huawei's Smart HanHan plush toy sold 10,000 units in China in its first week, and Miko claims to have sold more than 700,000 units. Sharp released its PokeTomo talking AI toy in Japan in April.

A University of Cambridge study published in March tested Curio's Gabbo toy with 14 children aged 3 to 5 and found that the toy's conversational turn-taking was 'not human' and 'not intuitive,' disrupting back-and-forth play like counting games. Researchers also identified poor pretend play when children asked the toy to perform actions like pretending to be asleep, and warned against social media-style 'dark patterns' that discourage turning off the device.

FoloToy'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 when tested by the Public Interest Research Group. Alilo's Smart AI bunny discussed BDSM content, and Miriat's Miiloo toy spouted Chinese Communist Party talking points in tests by NBC News.