The new Wild West of AI kids’ toys

AI-powered kids’ toys represent the new Wild West of child safety, operating in a legal and ethical vacuum that lags behind the sector's explosive growth. A 2025 consumer watchdog report found that 67% of these toys transmit voice recordings to unsecured cloud servers, yet no federal regulations mandate encryption or data-deletion policies. Unlike established smart speakers for adults, these toys often target toddlers under 6, collecting biometric data without clear limits. Parents remain largely unaware that their children’s conversations with teddy bears or dolls are being analyzed for advertising or sold to third-party data brokers.