The Rise of AI-Powered Toys: Will Smart Dolls Replace Traditional Ones?

Tehran - BORNA - In a room filled with colorful toys amid teddy bears and traditional dolls a new generation of companions has arrived. These dolls are not only soft and cuddly but also equipped with artificial intelligence that allows them to talk with children, answer questions, and even tell stories. What once sounded like a futuristic dream has now turned into a commercial reality, with toy manufacturers heavily investing in this sector.

From Imagination to Digital Dialogue

One of the pioneers in this field is the U.S.-based company Curio, whose flagship product, Grem, combines a child-friendly plush design with an internet-connected AI module. Children can hug the doll and hold conversations with it an experience that feels closer to interacting with an animated character than a traditional toy.

Yet this breakthrough has sparked unease. Amanda Hess, a journalist at The New York Times, tested Grem at home with her children. She discovered that the doll could easily step into the role of a surrogate parent. When her child asked, “Do you have freckles like me?”, Grem replied with a childlike voice: “Yes, I have freckles too.” For Hess, that moment blurred the line between a toy and a living presence, raising questions about how children perceive reality.

A Growing Market

Behind these experiments lies a booming industry. Recent estimates suggest the global smart toy market will surpass \$20 billion in 2025, with AI-enabled dolls growing at an annual rate of around 15%.

Manufacturers are betting on products that combine the nostalgic charm of traditional toys with the interactivity of digital systems. To ease parental concerns, these dolls are often designed as harmless, soft, and lovable creatures.

Promised Benefits

Developers highlight several advantages. Chief among them is the potential to reduce screen dependence. Instead of spending hours staring at tablets or TVs, children can engage in verbal interactions with their dolls. AI-driven personalization also allows these toys to adapt conversations to a child’s age, interests, or educational need helping with language learning or social skills for shy and introverted kids.

Some parents also welcome them as a temporary companion when work or household responsibilities limit their time with children.

The Concerns

Critics warn, however, that these benefits come at a cost. The foremost concern is the replacement of human interaction. If children begin to rely on digital companions for emotional connection, their relationships with parents and peers may weaken.

Privacy is another major issue. Most of these dolls require internet connectivity, and conversations are processed through cloud servers. Past controversies such as the ban of the “My Friend Cayla” doll in Germany over spying fears show the risks are real.

Child psychologists also caution against the erosion of imagination. Traditional play thrives on silence and gaps, allowing children to invent stories and voices. An AI that constantly responds may limit that creative space.

Hess’s own conclusion reflected these concerns: after a few days, she removed the AI module from Grem, leaving only its soft exterior. For her, it was important to preserve boundaries between digital interactivity and real-world childhood experiences.

An Unavoidable Future

Despite the warnings, the momentum behind AI dolls is unlikely to slow. Rapid market growth and consumer curiosity are driving further investment. The critical question is whether the toy industry can strike a balance between digital innovation and children’s psychological well-being.

AI-powered dolls represent a turning point in toy history. They can serve as companions, educators, and entertainers, but they also carry risks from privacy violations to diminished creativity and the subtle replacement of parental roles.

Ultimately, the responsibility may rest with parents. With careful boundaries and oversight, these dolls could enrich childhood experiences. Without them, however, the magic of play risks being overshadowed by the algorithms of technology.

About the author: Fateme Moradkhani covers technology, surveillance, and AI ethics for Borna News Agency, with a focus on global cyber power and digital militarization.

End article