AI-Powered Toys from China: Data Privacy Concerns for U.S. Children

A new trend of AI-powered toys, predominantly produced in China, has sparked concerns among U.S. officials regarding potential data privacy risks for children. The Shenzhen Toy Industry Association and JD.com report that these smart toys are part of a rapidly expanding market, projected to reach $14 billion in China by 2030 and $25 billion globally by the same year.
Rep. Raja Krishnamoorthi, D-Ill., has raised alarms about these toys, which are not only targeted at parents but also educators in the United States. The House Select Committee on the CCP has sent a letter to Education Secretary Linda McMahon, emphasizing the "data privacy and child safety concerns" associated with AI toys manufactured by Chinese companies.
One particular toy, BubblePal, has been singled out as a potential risk. Made in China, BubblePal attaches to a stuffed animal and operates using DeepSeek's large language model. It stores voice data and conversation histories in cloud systems, raising worries about potential access under PRC data laws. With 200,000 units sold since last summer, BubblePal is aimed at children as young as three.
The House committee is calling on Secretary McMahon to launch a nationwide awareness campaign for educators, collaborate with federal agencies to bolster oversight, and offer clear guidance to parents on how their children's data may be utilized or misused. Krishnamoorthi has urged for proactive measures to address the security risks and privacy concerns associated with these products.
As the popularity of AI toys continues to rise, U.S. officials are committed to addressing these emerging challenges and safeguarding the privacy and security of American children.