Mattel and OpenAI: is the new era of AI toys coming?

Mattel ’s recent announcement of a partnership with OpenAI was called in the official statement a “strategic collaboration to support AI-powered products and experiences for brands.” But the move points to one direction: how the maker of toys like Barbie and Hot Wheels can step up its game and, like competitors in the U.S., China and India , change the way kids play.

BIG PEOPLE AGREEMENT

The agreement between the global leader in the children’s toys and entertainment segment and the company led by Sam Altman will have as one of its missions the development of AI projects for games.

 In the collaboration project, the two companies promise to emphasize “safety, privacy and security in the products and experiences” they develop together – a message addressed to parents, concerned about children’s access to AI .

The first product is expected to be announced later this year. The two partners confirmed that Mattel will incorporate OpenAI ’s advanced AI tools , such as ChatGPT Enterprise, into its business operations to enhance product development and creative design, drive innovation and deepen engagement with its consumers.

“Through OpenAI, Mattel will have advanced AI capabilities that can drive the development and operations of consumer products and experiences,” the companies said.

MATTEL AIMS LEADERSHIP IN INNOVATION

“With OpenAI, Mattel has access to a powerful suite of AI capabilities, plus new tools to enable productivity, creativity and transformation at scale across the enterprise,” said Brad Lightcap , chief operating officer at OpenAI, in a statement.

On Mattel’s side, according to the Franchising Director, Josh Silverman , stated in the same note, it is to leverage new technologies to consolidate the company’s leadership in innovation and develop new ways of playing.”

Since the announcement of the agreement between Mattel and OpenAI did not provide many details about what to expect on toy store shelves , it is not yet possible to say what the impact on the sector will be. The fact is that launches for children have already included items with embedded AI.

TOY-ROBOT AI LEARNS SKILLS

One of the brands that managed to popularize its products is Miko , based in India, founded in 2015. The company is dedicated to projects aimed at developing educational robots for children.

The company reports on its website that it is a leader in the global market for interactive learning robots , with 700,000 units sold.

The flagship product — the Miko 3 robot, launched in 2021 — combines AI-powered conversational capabilities with a suite of educational content . Like Amazon’s Alexa, the Miko 3 is voice-activated.

With the ability to interact with the user, the toy can be 100% controlled by the children’s parents. They find resources such as the possibility of contextualizing the subjects so that Miko begins to engage in more conversations about pre-established topics aimed at developing certain skills, such as social skills.

In so-called exchanges between the child and the robot, Miko will learn how the child responds, as well as their interests and level of engagement, the company’s senior vice president of growth, Ritvik Sharma , said in an interview with the American TV channel Fox News, in July 2023.

“It’s a very personalized experience, combined with a lot of AI and advanced technology,” Sharma explained. The executive stressed at the time that the AI-powered toy does not allow the child to have direct access to the internet.

WHAT DO THE CHINESE SAY?

Like the Miko robot, toys integrated with large AI models have enabled new interactive experiences for children to have fun. For example, they go beyond understanding a child’s language patterns by learning and intelligently adapting based on their reactions. As a result, it is possible to count on personalized interactive services.

The new moment in the toy industry is linked to the popularization of AI resources . In the case of China , a giant in the sector, the expansion of DeepSeek – with its promise of artificial intelligence at a lower cost than its Western competitors – has given the local industry the conditions to further accelerate the development of products with this type of embedded technology .

According to Chinese official media, one of the companies that has stood out in accelerating the process of AI innovation is the Shanghai-based startup FoloToy . The company used Chinese AI chips and DeepSeek to transform cuddly animal-shaped toys into interactive English tutors and daily companions for children, founder and CEO Wang Le told Xinhua .

According to the agency, FoloToy is set to enter the AI-integrated toy market in 2023. Last year, the company sold more than 20,000 units through e-commerce platforms such as Tmall and Amazon.

Another interesting case is that of Sun Lijuan , the owner and designer of a toy store in Yiwu City , Zhejiang Province, in eastern China. Yiwu is a major global hub for toy retail. The highly efficient manufacturing chain in the city allows new products to go from concept to production in just one day, giving manufacturers a competitive edge.

“We have designed intelligent Arabic-speaking dolls for the Middle Eastern market , with about 70 percent of our recent orders coming from the region,” Sun Lijuan told the official agency.

PROMISING FUTURE FOR BIG PEOPLE

The latest data released by the Chinese government points to investment plans in AI in the order of 10 trillion yuan (about US$1.4 trillion ) over the next 15 years.

Projections of funding for AI projects in the world’s second-largest economy show that toys with these capabilities are part of a much bigger game that will accelerate different sectors. When it comes to the present and future of AI, it’s a big game.



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