Core Viewpoint - The AI toy market is experiencing explosive growth, with projections indicating that 2025 will be the "explosion year" for AI toys, driven by advancements in AI technology and consumer demand [1][2]. Market Overview - The AI toy market has surpassed 1,000 related products on a major e-commerce platform, with top products selling over 10,000 units monthly. Some consumers are purchasing dozens of items for collection [2]. - The market size for AI toys reached $18.1 billion in 2024, with expectations to exceed $30 billion in 2025, and China is projected to account for nearly half of this market. By 2033, the global market size is expected to grow to $60 billion [2]. Product Features - AI toys offer emotional companionship and "human-like" interaction, enabling natural dialogue and emotional exchanges, as well as functionalities like knowledge Q&A, language practice, and storytelling [2]. - Examples include the "Eye-catching Bag" equipped with a large model that supports bilingual conversations and the LOVOT robot from Groove X, which provides a realistic companionship experience through temperature simulation and tactile feedback [3]. Advanced Capabilities - Higher-end AI toys can perform tasks such as baby monitoring, pet surveillance, theft prevention, psychological counseling, and medication reminders [5]. Privacy Concerns - Despite the market's success, concerns about privacy and data security persist, particularly regarding the high costs associated with these toys and the potential for data breaches [5]. - A notable incident involved the CloudPets toy, which leaked over 2 million voice messages and 800,000 emails and passwords, highlighting the risks associated with voice-enabled toys [6]. Data Collection Risks - AI toys often collect personal information through microphones, cameras, and sensors, which can lead to unauthorized data usage and privacy violations [7]. - Risks include extensive data collection, inadequate data storage and transmission security, and insufficient content moderation, which can expose children to inappropriate information [7]. Recommendations for Safety - Companies are encouraged to implement strict access control mechanisms and provide parents with content filtering and usage time management features to protect children's privacy [8]. - Consumers should enhance their privacy awareness by purchasing from reputable sources, reviewing privacy agreements, and managing permissions on AI toys [8].