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AI toys are all the rage in China—and now they’re appearing on shelves in the US too.

AI toys are all the rage in China—and now they’re appearing on shelves in the US too.

Estimated Reading Time: 6 minutes

  • AI toys are experiencing a significant boom in China, fueled by a long-standing market for educational electronics for children.
  • Leading Chinese AI toy companies, such as Haivivi (BubblePal) and FoloToy, are successfully expanding their reach into international markets, including the US, UK, and Canada.
  • The global market is becoming increasingly competitive with the entry of Western firms like Mattel (partnering with OpenAI) and musician Grimes (Grok), signaling widespread interest in AI-powered play.
  • While praised for being screen-free and having parental controls, early parental feedback from China highlights challenges such as glitchy AI, long responses that cause children to lose interest, and voice recognition issues.
  • Parents are advised to prioritize age-appropriate engagement, scrutinize privacy policies, and seek toys with adaptability for sustained long-term value.

The landscape of children’s entertainment is undergoing a rapid evolution, profoundly shaped by the integration of artificial intelligence. What once belonged to the realm of science fiction – toys that genuinely engage, respond, and learn – is now a tangible reality finding its way into homes worldwide. This exciting shift has been particularly dynamic in China, where innovation in AI-powered playthings has truly flourished, and these captivating devices are increasingly making their mark on international markets, including shelves across the United States.

This technological leap holds immense promise for transforming childhood play, offering new avenues for interaction, learning, and companionship. From cuddly creatures that hold detailed conversations to interactive gadgets designed to stimulate young minds, AI toys represent a significant paradigm shift. However, like all emergent technologies, they present unique considerations regarding user experience, privacy, and their ultimate role in a child’s development.

Kids have always played with and talked to stuffed animals. But now their toys can talk back, thanks to a wave of companies that are fitting children’s playthings with chatbots and voice assistants.

It’s a trend that has particularly taken off in China: A recent report by the Shenzhen Toy Industry Association and JD.com predicts that the sector will surpass ¥100 billion ($14 billion) by 2030, growing faster than almost any other branch of consumer AI. According to the Chinese corporation registration database Qichamao, there are over 1,500 AI toy companies operating in China as of October 2025.

One of the latest entrants to the market is a toy called BubblePal, a device the size of a Ping-Pong ball that clips onto a child’s favorite stuffed animal and makes it “talk.” The gadget comes with a smartphone app that lets parents switch between 39 characters, from Disney’s Elsa to the Chinese cartoon classic Nezha. It costs $149, and 200,000 units have been sold since it launched last summer. It’s made by the Chinese company Haivivi and runs on DeepSeek’s large language models.

Other companies are approaching the market differently. FoloToy, another Chinese startup, allows parents to customize a bear, bunny, or cactus toy by training it to speak with their own voice and speech pattern. FoloToy reported selling more than 20,000 of its AI-equipped plush toys in the first quarter of 2025, nearly equaling its total sales for 2024, and it projects sales of 300,000 units this year.

But Chinese AI toy companies have their sights set beyond the nation’s borders. BubblePal was launched in the US in December 2024 and is now also available in Canada and the UK. And FoloToy is now sold in more than 10 countries, including the US, UK, Canada, Brazil, Germany, and Thailand. Rui Ma, a China tech analyst at AlphaWatch.AI, says that AI devices for children make particular sense in China, where there is already a well-established market for kid-focused educational electronics—a market that does not exist to the same extent globally. FoloToy’s CEO, Kong Miaomiao, told the Chinese outlet Baijing Chuhai that outside China, his firm is still just “reaching early adopters who are curious about AI.”

China’s AI toy boom builds on decades of consumer electronics designed specifically for children. As early as the 1990s, companies such as BBK popularized devices like electronic dictionaries and “study machines,” marketed to parents as educational aids. These toy-electronics hybrids read aloud, tell interactive stories, and simulate the role of a playmate.

The competition is heating up, however—US companies have also started to develop and sell AI toys. The musician Grimes helped to create Grok, a plush toy that chats with kids and adapts to their personality. Toy giant Mattel is working with OpenAI to bring conversational AI to brands like Barbie and Hot Wheels, with the first products expected to be announced later this year.

However, reviews from parents who’ve bought AI toys in China are mixed. Although many appreciate the fact they are screen-free and come with strict parental controls, some parents say their AI capabilities can be glitchy, leading children to tire of them easily.

Penny Huang, based in Beijing, bought a BubblePal for her five-year-old daughter, who is cared for mostly by grandparents. Huang hoped that the toy could make her less lonely and reduce her constant requests to play with adults’ smartphones. But the novelty wore off quickly.

“The responses are too long and wordy. My daughter quickly loses patience,” says Huang, “It [the role-play] doesn’t feel immersive—just a voice that sometimes sounds out of place.”

Another parent who uses BubblePal, Hongyi Li, found the voice recognition lagging: “Children’s speech is fragmented and unclear. The toy frequently interrupts my kid or misunderstands what she says. It also still requires pressing a button to interact, which can be hard for toddlers.”

Huang recently listed her BubblePal for sale on Xianyu, a secondhand marketplace. “This is just like one of the many toys that my daughter plays for five minutes then gets tired of,” she says. “She wants to play with my phone more than anything else.”

China’s AI Toy Revolution: A Foundation for Global Play

The explosion of AI toys finds its most robust origins in China, a nation with a unique historical affinity for technologically advanced educational electronics for children. This cultural predisposition, nurtured by devices like BBK’s “study machines” from the 1990s, laid the groundwork for sophisticated AI integration into playthings. Today, companies like Haivivi, with their clever BubblePal device, and FoloToy, offering customizable voice patterns for plush companions, exemplify this thriving domestic market. These innovators are not merely producing toys; they are crafting responsive entities that can read stories, simulate friendships, and even adopt the familiar voices of family members, fundamentally redefining the potential of a child’s toy.

The sheer velocity and scale of this growth are remarkable. With projections indicating the sector will exceed ¥100 billion ($14 billion) by 2030 and a current count of over 1,500 AI toy companies, China stands as an undeniable leader in this emerging industry. This powerful domestic base provides an invaluable ecosystem for developing and refining AI technologies tailored for young users, preparing these companies for expansion onto a global stage.

Expanding Horizons: AI Toys Reach Western Markets

Armed with proven success in their home country, Chinese AI toy manufacturers are now strategically venturing into international territories. The launch of BubblePal in the US, Canada, and the UK, alongside FoloToy’s impressive presence in over ten countries, including Brazil and Germany, underscores a clear ambition for global market penetration. This expansion, however, involves navigating varied consumer landscapes. As analyst Rui Ma points out, the strong, established market for children’s educational electronics in China doesn’t have an exact parallel globally, requiring a different approach.

Yet, the global toy market is vast, and a universal curiosity about AI promises fertile ground. As Chinese firms adapt to these new environments, they are also encountering a growing wave of competition from Western companies. Notably, the musician Grimes helped to create Grok, a plush toy designed for interactive chat and personality adaptation. Meanwhile, toy industry titan Mattel is collaborating with OpenAI to infuse conversational AI into iconic brands like Barbie and Hot Wheels, with initial product announcements anticipated later this year. This competitive landscape highlights the widespread recognition of AI’s transformative potential for children’s play and learning.

The Practical Side: Parental Experiences and Future Refinements

Amidst the excitement and rapid development, real-world experiences from parents who have adopted AI toys offer crucial insights. Many appreciate the design choice of being screen-free, offering a welcome alternative to tablets and smartphones, and the implementation of robust parental controls for safety and content management. However, the core AI functionalities sometimes struggle to meet high expectations.

A notable example comes from Penny Huang in Beijing, who purchased a BubblePal for her daughter. Huang’s hope was that the toy could offer companionship and reduce her child’s reliance on adult smartphones. Yet, as she explains, the novelty quickly faded. “The responses are too long and wordy. My daughter quickly loses patience,” Huang recounts, also noting that the role-play “doesn’t feel immersive—just a voice that sometimes sounds out of place.” Similarly, Hongyi Li, another BubblePal user, reported issues with voice recognition lag, stating, “Children’s speech is fragmented and unclear. The toy frequently interrupts my kid or misunderstands what she says.” Li also highlighted a practical challenge: the continued need to press a button for interaction, which can be difficult for toddlers. These accounts illustrate that while the technology is advanced, its application requires further refinement to genuinely resonate with the unique communication styles and attention spans of young children.

Actionable Steps: Guiding Your AI Toy Purchase

As the AI toy market continues its rapid expansion, making an informed decision about integrating these technologies into your child’s play becomes essential. Here are three key actionable steps for parents:

  • 1. Prioritize Age-Appropriate Engagement and Functionality: Look beyond general AI claims. Research specific reviews and demonstrations that highlight how the toy manages children’s diverse speech patterns, its range of interactive capabilities, and whether the content it provides is genuinely enriching and suitable for your child’s developmental stage. Consider if the toy supports imaginative play, educational goals, or emotional development effectively.
  • 2. Diligently Investigate Privacy Policies and Data Security: AI toys, especially those with voice interaction, often collect user data. Before any purchase, thoroughly review the manufacturer’s privacy policy. Understand precisely what information is gathered, how it’s stored and protected, and if or how it’s shared with third parties. Opt for companies with transparent data practices and strong commitments to safeguarding children’s privacy.
  • 3. Seek Adaptability and Long-Term Value: Consider if the toy offers features that allow it to evolve with your child. Toys that provide customization options, regular content updates, or the ability to adapt to a child’s changing interests are more likely to sustain engagement beyond the initial novelty phase. Features like BubblePal’s character variety or FoloToy’s voice training capability can significantly extend a toy’s lifespan and relevance in a growing child’s play repertoire.

The Future of Play: A Dynamic and Evolving Dialogue

The emergence of AI toys, powerfully driven by Chinese innovation and now gaining traction across global markets, represents an exciting new frontier in children’s entertainment. While the sector is experiencing significant growth and intensifying competition, the journey from intriguing gadget to indispensable playmate is still unfolding. The valuable feedback from parents in China underscores the critical need for AI toys to deliver truly seamless, intuitive, and deeply engaging interactions that genuinely connect with children’s unique ways of learning and playing.

As developers continue to refine their technologies and integrate user feedback, the potential for AI toys to become cherished companions, effective educational tools, and powerful catalysts for imaginative play remains vast. The dialogue between a child and their toy is no longer a one-sided affair; it’s becoming an increasingly sophisticated and personalized interaction, promising an even more dynamic future for playtime.

Join the Conversation!

What are your thoughts on AI toys? Have you purchased one for your child? Share your experiences, insights, and any questions you might have in the comments below. Let’s explore this evolving world of play together!

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Frequently Asked Questions (FAQ)

  • What are AI toys and why are they popular in China?

    AI toys are playthings equipped with artificial intelligence, allowing them to engage, respond, and learn. They are particularly popular in China due to a long-standing market for kid-focused educational electronics and devices that act as educational aids or playmates.

  • Which Chinese AI toy companies are expanding into the US market?

    Prominent Chinese AI toy companies expanding internationally include Haivivi, makers of BubblePal, which launched in the US, Canada, and UK, and FoloToy, available in over 10 countries including the US, UK, Canada, Brazil, and Germany.

  • Are there any US companies developing AI toys?

    Yes, US companies are also entering the market. Musician Grimes helped create Grok, a plush toy with conversational AI. Additionally, toy giant Mattel is collaborating with OpenAI to integrate conversational AI into popular brands like Barbie and Hot Wheels.

  • What are common concerns or feedback from parents about AI toys?

    While parents appreciate features like screen-free interaction and parental controls, common concerns include glitchy AI capabilities, overly long and wordy responses that children lose interest in, and issues with voice recognition accuracy, especially with fragmented children’s speech.

  • What should parents consider before buying an AI toy?

    Parents should prioritize age-appropriate engagement and functionality, investigate privacy policies and data security thoroughly, and seek toys that offer adaptability and long-term value through customization or updates.

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