AI-powered interactive toys combine physical sensors with software that interprets a child’s input and responds, sometimes through a companion app and internet services. What they collect depends on the product: a toy may process information on-device, send it to a manufacturer’s service, or involve outside providers. Check the toy and its app—not just the packaging—before buying or connecting it.
How an AI interactive toy works
A typical interaction follows a simple chain: a microphone or another sensor captures input, software interprets it, and the toy responds with speech, movement, or another action. Some products handle parts of this process inside the toy; others rely on a phone app, an internet connection, or remote services. Speech-recognition and other external providers may also be involved. There is no single architecture shared by all AI toys.
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One documented example is Curio Interactive’s Grok, a plush rocket-shaped toy studied in 2024. It contained a voice box and required Wi-Fi setup through a companion app. After setup, users could have English-language conversations through its ChatGPT voice interface. This describes the product and configuration examined in that study, not every AI toy or necessarily Grok’s current software behavior. Pavliv, Akbari, and Wagner’s study
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The researchers reported an outgoing data stream while their tested toy was switched on, including when it was not reacting to a wake word. They measured traffic at roughly 30 kb/s and said that rate was consistent with a good-quality audio stream at 256 kbps. They interpreted the observation as a potential audio-surveillance risk. It is a finding about one tested device and configuration, not evidence that all toys continuously transmit audio or that later versions behave the same way. Pavliv, Akbari, and Wagner’s study
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The same study reported that Grok’s onboarding asked for a child’s name, interests, favorite toy, and a home tour. The researchers said the privacy policy characterized those details as optional, but that this was not made clear to the child during onboarding. That is a product-specific observation, not a general feature of AI-toy setup.
What information might be collected
Collection depends on the toy, its app, its settings, and the services connected to it. Possible data includes:
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- Smart AI Core with Custom Name & Real‑Time Voice Chat:Built‑in intelligent AI core supports custom exclusive name and smooth real‑time voice chat. It listens and replies to kids’ creative questions for unique conversations. Powered by 1000mAh rechargeable battery, it delivers up to 7‑day runtime and charges conveniently via Type‑C 5V/1A cable as your modern interactive plush companion.
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- Simple One‑Touch Control for Independent Play:User‑friendly physical buttons for small children. Tap to activate voice chat with no complicated setup. Kids enjoy fun interactive play fully on their own, no extra mobile device required.
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- Voice and nearby conversation: A microphone may capture what a child says to the toy, and potentially speech within earshot. The FBI’s Internet Crime Complaint Center (IC3) says toy interactions or conversations are typically sent to manufacturer or developer servers or cloud services; third-party voice-recognition companies may also be involved. FBI IC3 advisory
- Details shared during play: Children may volunteer names, school, likes, dislikes, or activities in ordinary conversation. Information in the toy’s surroundings may also be picked up, depending on what its sensors capture. FBI IC3 advisory
- App, device, and persistent identifiers: Apps or online services may use identifiers associated with a device or account. The FTC says persistent identifiers can count as personal information under COPPA in relevant circumstances. FTC COPPA FAQ
- Location or other app-permission data: In September 2025, the FTC announced an action alleging that Apitor’s Android companion app enabled a third party to collect precise location data from children without notifying parents and obtaining consent. This is a specific allegation about that app, not proof that all robot toys collect location. FTC Apitor announcement
Voice and conversation can reveal personal details even if a child never fills out a profile. Also consider what a companion app can access: a toy’s hardware is not necessarily the only point where information is collected.
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Where the data can go—and what that means
A toy’s sensors may connect to software embedded in the device, then to a companion app, a manufacturer’s service, or outside providers that perform functions such as speech recognition. The paths vary, so a privacy policy should identify what is collected, where it is stored, who can access it, and how long it is retained.
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The IC3 advisory emphasizes that security depends on the toy, partner apps, and the Wi-Fi network. It identifies encrypted connections and authenticated Bluetooth pairing as protections against unauthorized access or eavesdropping. The FTC’s Apitor announcement illustrates a different risk: a third-party software development kit in a companion app could, according to the agency’s allegations, send precise location data to a third party. Review app permissions and named processors as well as the toy itself.
What U.S. COPPA protections do—and do not—mean
In the United States, the Children’s Online Privacy Protection Act (COPPA) can apply to covered online services—including mobile apps and Internet of Things devices such as smart toys—that are directed to children under 13 and collect, use, or disclose children’s personal information. It can also apply to some general-audience services that have actual knowledge they are doing so. The FTC says covered operators generally must post a privacy policy, give parents direct notice, and obtain verifiable parental consent before collecting children’s personal information, subject to limited exceptions. The FTC’s FAQ reflects a rule amended on April 22, 2025. FTC COPPA FAQ
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The FTC treats a child’s voice recording as personal information. Its FAQ describes a narrow enforcement-policy exception for audio collected solely as a substitute for written words to fulfill a verbal request and retained only briefly, alongside requirements for clear notice of audio use and the deletion policy. This is not a blanket exemption for voice-enabled toys. Whether COPPA applies, and what obligations follow, depends on the service and the facts.
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- [Lovi AI Companion Robot | Lively Conversations]: More than an AI talking toy, this is a true interactive companion. With a vibrant LCD screen that displays over 20 emotions and the ability to switch between 8 unique character modes and 6 fun voices, every chat is a new adventure. It responds to your child’s mood, keeping them engaged and sparking joy with every interaction.
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Checklist for buying and setting up a toy
Use these questions to compare products and understand the setup before a child starts playing. If the manufacturer cannot answer them clearly, treat that uncertainty as part of the decision.
- Identify the sensors and their triggers. Does the toy have a microphone, camera, or other sensor? What activates it? Is there a visible or audible indicator when it is listening or recording? FTC consumer advice UK ICO connected-toy guidance
- Find out what works offline. Does play require an account, Wi-Fi, or a companion app? Can you turn off the microphone, connectivity, or collection using controls on the toy itself? UK ICO connected-toy guidance
- Trace the data path. Ask what is collected during play, where it is stored, which companies can access it, and how long it is kept. Check whether the policy names third-party processors. FTC consumer advice FBI IC3 advisory
- Check parent controls. Can a parent review or delete a child’s information and stop further collection? Look for the actual controls and instructions, not only a general promise of privacy. FTC consumer advice FTC COPPA FAQ
- Review app permissions. Check whether the companion app requests location or other access unrelated to the play experience. The FTC’s Apitor action shows why app permissions and third-party software deserve scrutiny. FTC Apitor announcement UK ICO connected-toy guidance
- Ask about connection security. Does the manufacturer explain whether data connections are encrypted and Bluetooth pairings authenticated? FBI IC3 advisory
- Read the policy before committing. Can you read the privacy policy and terms before purchase and setup? The ICO recommends this transparency, and the FTC identifies data handling as a factor to consider when buying. UK ICO connected-toy guidance FTC consumer advice
How to compare two toys
There is no verified head-to-head ranking here. Compare the details that determine how much information a toy could collect and how much control a family has:
| What to compare | Questions to ask |
|---|---|
| Microphone and other sensors | What sensors are present, what activates them, and is collection visibly indicated? |
| Processing and connection | Is input handled locally or sent to cloud services? Is an app, account, or Wi-Fi required? Can the toy work offline? |
| Companies with access | Does the policy name the manufacturer and outside providers that receive information? |
| Retention and parent controls | How long is data kept? Can parents review it, delete it, and stop future collection? |
| App permissions | Does the app request location or other data access? Is the reason explained? |
| Security and physical controls | Are connections encrypted and pairings authenticated? Can listening or connectivity be switched off? |
Current privacy policies, retention periods, deletion procedures, and product availability have not been established across a representative range of AI toys. Treat each product’s current policy and app permissions as the deciding evidence rather than assuming one example represents the category.
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