What is happening?
China's Al toy sector stood at US$3.5 billion in 2025 and could grow to US$12 billion by 2030.
Huawei, JD.com, and UBTech are among Chinese tech firms moving into Al toys, while investors put US$31 million into Chinese Al toy startups in the first half of 2025.
Why it matters
Analysts say toys are currently the easiest Al products to turn into sales, helped by a supply chain that is already well established. Interest is also spreading beyond children, as adults look to these toys for comfort and stress relief.
Privacy remains a concern due to data gathered from children. Some critics also question how constant interaction with Al toys could affect brain development at a young age.
