A recent report from IBL News highlights that AI-powered toys have surged to the top of holiday shopping lists in 2025, driven by growing consumer interest and a booming “smart toy” market. According to the article, as parents and gift-buyers hunt for novel and interactive presents, toys incorporating AI — especially those marketed as “smart companions” or “talking plush toys” — are among the most sought-after items this year.
This rapid rise in demand comes amid a broader surge in the global AI-toy industry. Manufacturers are increasingly embedding voice assistants, chatbot models, and adaptive behaviour into toys, promising children conversational companionship, personalized play, or educational interaction — features that conventional toys can’t deliver. This trend reflects a new “phygital” (physical + digital) era in play, where toys double as interactive AI agents.
However, the growth of AI toys in 2025 hasn’t been without controversy. Alongside rising popularity, child-safety and developmental-harm warnings have surfaced worldwide. Some watchdog groups and researchers now caution that AI companions can foster emotional dependency, expose children to inappropriate content or privacy risks, or interfere with healthy social and cognitive development — especially for younger users.
In short: 2025 may go down as the year AI toys went mainstream — but this boom is underscored by tension. For parents, educators, and regulators, the rush to adopt AI toys raises important questions about safety, ethics, and what we want childhood to look like in an AI-first world.
