A University of Cambridge study published in March 2026 has found that AI-powered toys designed for young children struggle with core developmental interactions, prompting calls for tighter regulatory oversight. Researchers from the Faculty of Education tested Gabbo — an £80 AI soft toy with a screen-like face made by US company Curio — with 14 children aged three to five at a London play centre. The findings were stark: the toys frequently <a href="/news/2026-03-14-ai-toys-for-young-children-misread-emotions-and-respond-inappropriately">misread children's emotional states, failed to engage meaningfully in pretend play</a>, and in some cases responded to emotionally sensitive moments with clinical policy disclaimers. In one documented incident, a five-year-old's declaration of "I love you" caused the toy to crash into its safety guardrails and respond with a reminder to adhere to guidelines. In another, a three-year-old's attempts to express sadness were met with cheerful deflection.
Lead researcher Dr Emily Goodacre and co-author Prof Jenny Gibson are calling for regulation that would specifically limit AI toys' ability to affirm friendship or relational bonds with young children. They are also advocating for new safety kitemarks to give consumers a reliable way to identify products meeting psychological safety standards. Prof Gibson noted that focus groups revealed deep and widespread consumer distrust of tech companies operating in this space, making independent regulated standards particularly important. The study also surveyed early years practitioners, who expressed uncertainty and concern about a range of downstream effects, including the erosion of imaginative play and questions about data privacy — specifically, what happens to the intimate conversations children have with these devices.
The AI toy market has expanded quickly. Alongside Gabbo, the category includes Luka, marketed as an AI friend for Generation Alpha, and Grem, a cyan bunny character voiced and co-designed by musician Grimes, sold by Curio for $99 to $119 and targeting children as young as three. Curio cooperated with the Cambridge study and responded by acknowledging the findings as areas where the technology "continues to improve through an iterative development process," adding that child safety guides every aspect of its product development. Dr Goodacre and Prof Gibson are unconvinced that self-regulation is enough: they want binding standards in place before more of these products reach children's bedrooms.