As the holiday season approaches, consumer advocacy groups are issuing stark warnings about the surge in AI toys ― and the implications stretch far beyond the playroom, extending into the retail and supply chain sectors.
According to a recent NPR report, Fairplay, a nonprofit focused on children’s safety, has released an advisory titled “AI Toys Are NOT Safe for Kids”, urging families and retailers to rethink stocking these high-tech playthings.
The alert, backed by more than 150 experts, highlights risks such as privacy invasion, data collection, and the blurring of human relationships.
From a retail perspective, the cautionary message could reshape holiday inventory strategies. Toy manufacturers and major retailers may need to navigate a growing backlash against products powered by generative AI — especially if demand slows or regulations tighten. Meanwhile, supply chain managers face pressure to ensure transparent sourcing, stricter data security and compliance with child-safety regulations.
One of the most controversial examples was an AI-powered teddy bear, dubbed “Kumma,” was suspended by OpenAI after reports that it shared dangerous advice with minors, including how to start fires.
OpenAI emphasized it had removed the developer for violating its safety policies.
Companies producing connected robots — like Miko (a plastic robot with a screen) and Loona Petbot — argue that they are taking privacy seriously. Curio, the maker of Gabbo (a cube-shaped robot plush), insists their toys collect minimal data, and Miko.ai touts on-device processing, with visual data kept private and under parental control.
Representatives from The Toy Association, which represents major toy manufacturers and retailers, affirmed their commitment to safety. They noted that responsible toymakers already abide by strict federal standards, including the Children’s Online Privacy Protection Act (COPPA).
Their advice to retailers: source AI-powered toys from trusted brands, and prioritize child safety and data security in your supply chain decisions.
