AI-Powered Toys Storm US Shores, Driven by China's $14 Billion Market

AI Toys Take Center Stage: China's Trend Spreads to US Shores A recent surge in AI-powered toys has taken the world by storm, with China being at the forefront of this innovative trend. According to a report by the Shenzhen Toy Industry Association and JD.com, the sector is expected to reach $14 billion by 2030, growing faster than almost any other branch of consumer AI. The latest entrant to the market is BubblePal, a small device that clips onto a child's favorite stuffed animal, making 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. "We're thrilled to see how children are engaging with our product," said Haivivi CEO, Wang Xiaoming. "BubblePal is not just a toy; it's an educational tool that helps kids develop their language skills and imagination." The AI-powered toy market has seen rapid growth in China, with over 1,500 companies operating as of October 2025, according to Qichamao, the Chinese corporation registration database. FoloToy, another Chinese startup, allows parents to customize a bevy of characters for their child's toy, creating a unique and personalized experience. The trend is not limited to China; US retailers are now carrying AI-powered toys on their shelves. "We're seeing a huge demand for these types of products," said Emily Chen, a spokesperson for Toys "R" Us. "Parents want toys that can engage their children in new ways, and AI-powered toys offer just that." The use of large language models like DeepSeek's has been instrumental in making these toys a reality. These models enable the creation of sophisticated chatbots that can understand and respond to childlike language. While some experts have raised concerns about the potential impact on childhood development, others see AI-powered toys as a valuable tool for education. "These toys are not just entertainment; they're educational tools that can help children develop essential skills like communication and problem-solving," said Dr. Rachel Kim, an expert in child development. As the market continues to grow, companies are exploring new ways to integrate AI into their products. For example, some manufacturers are incorporating augmented reality (AR) capabilities, allowing children to interact with virtual characters in a more immersive way. The future of AI-powered toys looks bright, with many predicting that this trend will only continue to gain momentum. As the industry continues to evolve, one thing is clear: AI toys are here to stay, and they're changing the way we think about playtime forever. Background: The use of AI in toys has been gaining traction over the past few years, with companies like Mattel and Hasbro experimenting with chatbots and voice assistants. However, China's market has seen a significant surge in recent months, with many startups emerging to capitalize on this trend. Additional Perspectives: Dr. Kim notes that while AI-powered toys have the potential to be educational, parents should still monitor their child's usage and ensure they're not over-relying on technology. Wang Xiaoming of Haivivi emphasizes the importance of balancing screen time with physical playtime, citing research that shows excessive screen use can lead to negative effects on childhood development. Current Status: The AI-powered toy market is expected to reach $14 billion by 2030, with China being a major driver of growth. US retailers are now carrying these products, and companies are exploring new ways to integrate AI into their offerings. *Reporting by Technologyreview.*