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Currently, our country is using the “Artificial Intelligence +” initiative as a strategic pivot to accelerate the cultivation of an intelligent product ecosystem. AI toys, as a representative of new consumer trends, are innovating through the integration of “technology + culture + industry,” creating new ideas and new heights in play.
From intelligent interactions that can “understand and think” to the technological interpretation of national cultural IPs, AI toys not only break the traditional boundaries of play but also become a pioneering force in promoting manufacturing upgrades, cultural heritage, and changes in consumer experiences. This industrial leap driven by “AI+” is leveraging “small toys” to activate a “big ecosystem,” allowing innovation to flourish through play and new heights to emerge from integration.
AI+ Leading New Demands in the Toy Market
In the current global wave of emotional consumption, more and more teenagers and adults rely on toys for emotional value and psychological comfort, gradually becoming an important purchasing power in the toy market. This not only spurs the rapid development of subcategories such as IP trendy toys and stress-relief toys but also injects new vitality into the traditional toy market.
“Interactive, nurturing, with personality and memory, AI toys are favored by young people and have become a new competitive track in the industry.” At a press conference held by the Ministry of Industry and Information Technology on November 19, He Yaqiong, Director of the Consumer Goods Industry Department, described the current state of the AI toy industry. “Driven by both technological revolution and consumption upgrades, our toy industry is entering a new stage of intelligent development. Especially with the deep integration of artificial intelligence technology and the traditional toy industry, it is accelerating the reshaping of product forms and value chain structures, AI toys are becoming a new engine for promoting high-quality industrial development.”
He Yaqiong stated that the development of the AI toy industry shows three significant characteristics. First, the integration of products is stronger. Toys have developed into important carriers for the integrated application of AI technology and innovative fusion, with large language models and large visual models enabling toy products to “understand,” “see,” and “think.” They can think, communicate, and interact with you. At the same time, AI technology integrates with national cultural IP, making toy products rich in technological and cultural elements, significantly enhancing product added value. Second, the functional roles are redefined. Previously, toys mainly served as playmates for children, focusing on entertainment. With the integration of AI technology in toy products, the role of toys in people’s lives has evolved from a single entertainment function to a “smart partner” that integrates educational enlightenment, emotional companionship, and creativity stimulation, transitioning from “unchanging” to “increasingly understanding you.” Third, the user group is fully covered. AI toys break traditional age boundaries with technology, achieving coverage across all age groups and precisely meeting the differentiated needs of “old, middle-aged, young, and children.” For example, AI memory assistant toys effectively alleviate memory decline in the elderly through voice reminders, old song playback, and storytelling, becoming intimate companions for the elderly; at the same time, Wi-Fi/Bluetooth connectivity endows toys with internet access and content update capabilities, continuously expanding their interactive scenarios. This integration of “technology + culture” not only enhances product added value but also promotes the upgrade of AI toys from single entertainment to an all-age service ecosystem.
Our toy industry has developed over several decades, forming a market size of over a hundred billion yuan, with vast future development space. According to Frost & Sullivan data, the scale of China’s toy market is expected to reach 116.1 billion yuan in 2024 and 165.5 billion yuan by 2028, with a compound annual growth rate of 9.27%. According to data from Chinese customs, in the past five years, China’s toy exports have shown strong resilience, with cross-border e-commerce and independent brands activating new momentum for going global. Although the export scale has fluctuated, it has remained above 30 billion USD overall.
From a market perspective, China’s toy industry exhibits a competitive landscape of “many quantities but scattered quality.” According to Tianyancha data, as of March 10, 2025, the total number of toy-related enterprises nationwide reached 12.4875 million, with 3.5879 million new registered enterprises in 2024, a year-on-year increase of 27.42%. The influx of new players has led to low market concentration. However, leading enterprises are accelerating industry reshuffling through technological integration, and brand competition has entered a heated stage.
Three Aspects to Promote High-Quality Development of the AI Toy Industry
How to innovate and break through? Playability has become the core battlefield for product differentiation. Integrating cutting-edge technologies such as AR and generative AI into toy design, achieving a dual breakthrough of “fun + practicality” through interactive and dynamic content generation. For example, AI memory assistant toys, through voice interaction and old song playback in scenario-based designs, meet entertainment needs while also providing practical value. This integration of “technology empowerment + humanistic care” is the key path for enterprises to stand out from homogeneous competition.
Next, the Ministry of Industry and Information Technology will deepen cross-departmental collaboration mechanisms, using “policy guidance, innovation-driven, and regulation protection” as pathways to fully promote the AI toy industry towards high-end, intelligent, and standardized development. Specific measures focus on three major dimensions.
First, through policy guarantees, build a new ecosystem for supply-demand adaptation. The Ministry of Industry and Information Technology will work with relevant departments to formulate and publish implementation plans to promote the adaptability of supply and demand in consumer goods, guiding toy companies to apply AI technology to create more new demand. By leveraging policy levers, toy companies will be encouraged to deeply apply AI technology to create new demand scenarios such as “education + companionship” and “culture + technology.” For example, supporting companies to develop intelligent companions with emotional recognition and knowledge Q&A functions, stimulating children’s creativity through interaction, and achieving a personalized growth model of “learning through play and playing through learning,” promoting the transformation of toys from “passive entertainment” to “active empowerment.”
Second, promote product innovation and create benchmarks for cultural and technological integration. Encourage toy companies to establish a “demand insight + technology research and development” dual-driven mechanism with AI technology companies, deeply integrating cutting-edge technologies such as generative AI with traditional culture. Focus on developing a series of products that combine “national trend IP + AI interaction,” incorporating more excellent traditional culture into toys and leading consumer trends. Through AI technology, historical scenes can be restored, and intangible cultural heritage stories can be told, allowing children to experience the charm of technology and the cultural heritage of China in an immersive way.
Third, standardize development and build a solid safety development line. In response to consumer concerns about data security and privacy protection, the Ministry of Industry and Information Technology will lead the construction of a dual guarantee system of “technical protection + standard formulation.” On one hand, guiding companies to adopt technologies such as encrypted transmission and edge computing to strengthen data security; on the other hand, addressing consumer concerns about data security and network security in AI toys, the Ministry will work with relevant departments to strengthen research and judgment, while guiding toy companies to enhance technical protection and timely study and formulate relevant standards, clarifying requirements for information collection, storage, and use throughout the process. This will effectively ensure the quality and safety of AI toys and data privacy, providing solid support for the sustainable development of the industry.
Author: Yang GuangEditor: Gao ShanshanSupervisor: Liu Jing
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