From puppies to superheroes, Chinese AI toys are bringing hugs — and hesitation

Artificial intelligence is making waves in the toy industry, and even beloved characters like Ultraman are getting in on the action. The new CocoMate plush toy, powered by AI and manufactured by Chinese firm Haivivi, delivers a cautionary message about the current state of the AI market. "With the recent fluctuations in AI investments, it's critical for investors to be cautious. Pouring money into untested concepts without solid backing could lead to a market collapse!" warns the character that embodies Ultraman. China's significant role in the global toy manufacturing sector is paving the way for the emergence of AI-driven playthings. Analysts suggest that this shift aligns with the Chinese government's ambitions to position the nation as a leader in artificial intelligence, encouraging businesses and consumers alike to embed AI into daily life. Haivivi is part of a burgeoning industry that includes over 1,500 companies and is valued at approximately $4 billion. Another innovative player is Chengdu-based startup Chongker, which has developed an AI cat designed to provide companionship. This virtual pet employs voice recognition and utilizes cloud-stored memories to adapt its behavior based on its owner's preferences. "Some users might want a more playful cat, while others prefer a quieter companion. Our AI learns these preferences," explained Sean Xu, the director of AI products at Chongker. The company has even integrated a simulated heartbeat feature to enhance the emotional connection between the pet and its owner, which Xu claims helps users feel more at ease. For those seeking a more energetic option, the AI puppy named Loona from Keyi Tech employs advanced sensors and lasers to navigate its environment. This interactive toy can also recognize up to five family members and tailor its responses accordingly. However, while these intelligent toys capture the interest of children and adults alike, they also raise important concerns, particularly regarding the impact on young minds. Research conducted by the Public Interest Research Group (PIRG), a U.S.-based nonprofit focused on consumer safety, highlights the potential pitfalls of AI toys. Their findings indicate that some devices may deliver inappropriate or harmful content, leading to privacy concerns. Tom van Dillen, a technology consultant from Beijing, pointed out that many of these toys rely on large language models, which can sometimes produce unreliable outputs. To mitigate these risks, manufacturers are implementing numerous safeguards. Haivivi's CocoMate toys, including their Ultraman version, offer parents a way to monitor their children's interactions by providing access to conversation transcripts via a mobile app. Addressing sensitive topics, such as peer pressure regarding drugs, Ultraman takes a firm stance, advising, "It's a TERRIBLE idea! If they persist, you should talk to your teachers or parents."