Smart toys: Your child’s best friend or a creepy surveillance tool?

(Credit: Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Seth Bergeson, Project Fellow, Centre for the Fourth Industrial Revolution, World Economic Forum & Kay Firth-Butterfield, Head of Artificial Intelligence and Machine Learning; Member of the Executive Committee, World Economic Forum


  • The market for smart toys is rapidly expanding and could grow to $18 billion by 2023.
  • Smart toys can help with learning but pose risks if they are not designed to protect children’s data and safety.
  • Many companies are developing smart toys ethically and responsibly, with makers of AI-powered smart toys encouraged to apply to the Smart Toy Awards.

Imagine a child born this year who will be surrounded by technology at every phase of her childhood. When she is three years old, Sophie’s parents buy her a smart doll that uses facial recognition and artificial intelligence (AI) to watch, listen to, and learn from her.

Like many children, Sophie will come to love this toy. And like previous generations of children with a favorite doll or teddy bear, she will carry it around with her, talk with it, and sleep with it beside her for many years.

If the smart doll is designed responsibly, this toy could be her best friend; if not, it will be a surveillance tool that records her every move and word spoken in its presence by her, her friends, and even her parents.

Smart toys use AI to learn about the child user and personalize the play or learning experience for them. They can learn a child’s favourite colour, song, and learn to recognize that child and other familiar people in that child’s life. While this may sound futuristic, there are many smart toys that already provide these capabilities. The market for these toys is rapidly expanding and will grow to $18 billion by 2023.

To address this urgent use of AI, the World Economic Forum recently launched the Smart Toy Awards to recognize ethically and responsibly designed AI-powered toys that create an innovative and healthy play experience for children.

Smart toys provide enormous promise for children. They can customize learning based on data they gather about children; they can teach computer programming skills to children; and they can help children with disabilities develop cognitive, motor, and social skills.

But at the same time, smart toys provide large potential risks if they are not designed to protect children’s data, safety, and cybersecurity.

A cautionary tale

The example of Sophie’s smart doll is not far-fetched. In 2017, My Friend Cayla – an early smart toy that used facial and voice recognition – was declared an illegal surveillance tool in many countries.

If the Cayla doll was connected to a phone, data was sent to the manufacturer and a third-party company for processing and storage. And anyone with the My Friend Cayla app on their phone within 30 feet of a toy could access the toy and listen to the child user.

Germany issued a “kill order” for the doll and required parents to destroy it “with a hammer.” Today, the only surviving Cayla dolls in Germany reside in the Spy Museum in Berlin.

The risks posed by smart toys

Sophie applies to college when she is 18 years old. If her smart doll had collected data on her from the age of 3 to 9, the company who built the toy could know her better than her parents. Without adequate data protections, the company could also sell this data to the colleges to which she is applying or other third parties.

After college, Sophie applies to a job. If the employer bought data gathered on Sophie as a child, they could learn about her strengths and weaknesses. What if Sophie bullied her younger sister, yelled at her parents, or refused to do her homework as a child? All these actions conducted in the privacy of the family’s home could be known by the company and sold to third parties who could use this information to discriminate against Sophie. The family’s life is no longer private.

Today, data is gold but gathering data on children is inherently problematic. As a company gathers data about children through Sophie’s doll, they may have a responsibility to act or intervene. Imagine that Sophie tells her doll about suicidal thoughts and self-harm. Should the company be required to alert the parents and call 911?

The more data that a smart toy gathers the more complex scenarios smart toy companies will likely face. Every company designing a smart toy with the capabilities to gather this information must consider these worst-case scenarios as they develop toys to protect the safety of the child user and those around them.

The market for smart toys is rapidly expanding and could grow to $18 billion by 2023. Image: Statista

Developing responsible and ethical smart toys

Despite these significant risks, ethical and responsible smart toys are being developed. The Smart Toy Awards have developed four key governance criteria for companies developing AI-powered toys: data privacy and cybersecurity; accessibility and transparency; age appropriateness; and healthy play.

Sophie’s smart doll illustrates the importance of strong data privacy and clearly communicating to adults buying the toy what the smart doll does and how it operates. This must be communicated in the Terms of Service in language understandable by non-technologically literate audiences. At minimum, Smart Toys should meet COPPA requirements in the US and GDPR in the EU.

Parents and guardians should understand with whom children’s data is being shared and for what purpose. Companies should empower parents, guardians, and children to make their own decisions about how children’s data is being used. And companies should not sell children’s data to third parties.

Data privacy is a foundation for ethical and responsible smart toys, but they must also be designed to be accessible, transparent, age appropriate, and promote healthy play and children’s mental health.

The future of childhood

Sophie’s doll doesn’t necessarily pose concern for her and her parents, and data collected on her won’t hinder her future if the data is carefully protected. In the EU, GDPR provides the right to be forgotten, and a similar policy could allow children like Sophie to request that all data collected on them as children by their smart toys be deleted when they turn 18 years old, so they would have a fresh start as they begin adulthood.

Sophie and all children should have a fair shot at childhood, education, careers, and life. The data collected on them as children should not be used to discriminate against them in the future.

Smart toys like Sophie’s doll can play a pivotal role in childhoods, catalyzing creativity and critical thinking skills. Many companies are developing smart toys with careful consideration for ethics and responsibility. We urge companies to adopt our governance criteria as they’re designing and developing smart toys.

Childhood is a sacred time and parents will do everything they can to protect their children’s experiences. This won’t be possible unless stakeholders work together across the private, public, and nonprofit sectors to develop ethical, responsible, and innovative smart toys that protect and foster the essence of childhood.

Learn more, apply, and watch the smart toy awards:

Makers of AI-powered smart toys can apply to the Smart Toy Awards now using the “Apply” link on our website by 9 April 2021.

We encourage everyone interested in smart toys and childhood to watch the live-streamed virtual Awards show on May 22, 2021 when winners will be announced with special guest and judge will.i.am.


Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© WFP/Htet Oo Linn Families in Myanmar have been hit hard by rising prices, with the most vulnerable struggling to meet their daily needs.

US makes $1 billion contribution to UN child rights and food agencies

This article is published in association with United Nations. Two United Nations agencies have together welcomed more than $1 billion in assistance from the United States to support their operations targeting millions of children and hungry families in more than 40 countries. This week the US State Department announced a more than $800 million contribution to the […]
© UNICEF/Oleksii Filippov A bouquet of flowers and soft toys placed near the site of a missile strike, left in memory of the children killed in the early morning attack in Kyiv, Ukraine, on 24 April 2025.

‘Darkest chapter’: Record child violations in 2025, with national forces leading the way

This article is published in association with United Nations. For the first time, soldiers and Government forces were responsible for more grave violations against children in armed conflict than non-State armed groups – and 2025 set a grim new record for the total number of child victims.  The findings come in the annual UN report on Children and Armed […]
© UNICEF/Sukhum Preechapanich Children in Thailand are enduring extremely hot temperatures and drought. (file)

Triple climate threats affect nearly half the world’s children

This article is published in association with United Nations. Drought, extreme heat and heatwaves are the most prevalent trio of hazards endangering millions of children globally, warned a newly released climate report by the UN Children’s Fund (UNICEF). About 1.1 billion children now face at least three overlapping climate hazards, threatening their health, education and survival, […]
© UNOCHA Kyiv Pechersk Lavra is a UNESCO World Heritage Site and one of Ukraine's most significant religious and cultural landmarks.

Ukraine: Latest Russian attack kills civilians, damages cultural landmark

This article is published in association with United Nations. eral civilians were killed and dozens more were injured in the latest wave of overnight attacks in Ukraine that targeted the capital Kyiv, the city of Kharkiv and the country’s history and cultural heritage, the United Nations said on Monday. The Russian strikes damaged homes, schools and […]
© NASA/GSFC/Jacques Descloitres The Strait of Hormuz is a narrow but vital shipping route linking the Persian Gulf to the Gulf of Oman and the wider Arabian Sea. It lies between Iran to the north and Oman and UAE to the south.

Guterres welcomes US-Iran peace deal as ‘critical step’ toward ending conflict

This article is published in association with United Nations. UN Secretary General António Guterres welcomed on Sunday a new peace deal between the United States and Iran, calling it a “critical step” toward ending the conflict. According to a statement issued by his Spokesman, the agreement provides for an immediate and permanent ceasefire, the reopening of […]

Three seafarers killed in Hormuz strike as UN warns of widening fallout

This article is published in association with United Nations. Three Indian seafarers were killed in an attack on an oil tanker near the Strait of Hormuz on Wednesday, as renewed hostilities in one of the world’s most critical shipping corridors once again heightened concern over food security, fuel prices and broken global supply chains. The latest […]
© UNICEF/Royena Rasnat A group of Rohingya refugee children attend an activity centre in Cox's Bazar in Bangladesh.

Refugee numbers drop for first time in a decade, but millions remain trapped

This article is published in association with United Nations. Global forced displacement has decreased for the first time in a decade, the UN refugee agency (UNHCR) reported on Thursday, though the figure remains unacceptably high and tens of millions of people are still trapped in prolonged exile with little prospect of rebuilding their lives. UNHCR‘s flagship […]
This article is published in association with European Investment Bank.

Miles for Water: The Daily Health Burden of Climate Change on Women

This article was exclusively written for The European Sting by Ms. Jasminy Musa Belotti Dessiyeh, a 19-year-old medical student at FACISB (Faculdade de Ciências da Saúde de Barretos), Brazil. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and […]
© UNICEF A child is vaccinated against multiple diseases at a health centre in Cuba.

Children are dying as US sanctions push Cuba to the brink, warns UN human rights chief

This article is published in association with United Nations. Children are dying because doctors cannot access essential medicines, UN human rights chief Volker Türk said in a stark warning on Monday, calling for the immediate lifting of United States sanctions against the Caribbean nation that were causing “widespread harm”. “The fuel restrictions imposed since early 2026 and recent tightening of […]
© UNOCHA/Adedeji Ademigbuji Children displaced by the recent violence in Jonglei State, South Sudan, sit outside a church, home to thousands of displaced people.

World News in Brief: Millions displaced in South Sudan, global meat supply quadruples, Middle East crisis deepens global hunger

This article is published in association with United Nations. Months of fighting and insecurity have forced hundreds of thousands of people to flee their homes in South Sudan’s eastern Jonglei State, triggering “one of the most severe conflict-related displacement emergencies in recent years”, the UN refugee agency (UNHCR) said on Friday.  Tweet URL Fighting between the […]
© WFP/Marco Frattini Aid is distributed to displaced families in northern Lebanon.

Lebanon crisis: Needs soar as UN launches new funding appeal

This article is published in association with United Nations. The UN in Lebanon appealed for an additional $331.5 million on Friday to help 1.4 million people in crisis as already massive needs continue to grow, three months since deadly violence erupted between Hezbollah fighters and Israeli forces. “Humanitarian needs are soaring with each day of the […]
© UNICEF/Amer Almohibany Destroyed buildings in Harasta, Ghouta. A suburb of Damascus, Ghouta was the site of a deadly chemical weapons attack in August 2013.

Undeclared chemical weapons found in Syria, including type used in notorious Ghouta massacre

This article is published in association with United Nations. Chemical weapons inspectors have uncovered a significant cache of previously undeclared chemical weapons in Syria – including rockets of the same type used in the notorious 2013 Ghouta attack – in what the UN’s top disarmament official called a “momentous discovery” for international security. Izumi Nakamitsu briefed […]
© UNICEF Vanessa Frazier, Special Representative on Children and Armed Conflict, during a visit to frontline areas in Ukraine.

Growing up with sirens: UN child rights envoy on the toll of the Ukraine-Russia war

This article is published in association with United Nations. Children in Ukraine have been profoundly impacted by years of war, sheltering in underground schools – or forced to study online – and living with the psychological strain of constant air raid sirens that could spell death for them and their families. But children on both sides […]
OCHA/Charlotte Cans The El Niño-induced drought in Ziway Dugda, Oromia region of Ethiopia, is affecting every family and they don't have enough food at home to feed themselves. (file photo).

El Niño confirmed, set to fuel more extreme weather, says WMO

This article is published in association with United Nations. The UN urged all countries on Tuesday to bolster early warning systems after confirming the onset of El Niño, warning that the Pacific Ocean-warming phenomenon will bring above-average temperatures “nearly everywhere” and fuel more extreme weather. According to the World Meteorological Organization (WMO), there is an 80 […]
© UNICEF The aftermath of a Russian strike on a residential area in Kyiv, Ukraine’s capital.

UN deplores another wave of Russian attacks across Ukraine

This article is published in association with United Nations. Overnight attacks in three key cities in Ukraine have left several civilians dead, scores more injured, and homes, hospitals and shops destroyed or damaged, the UN Humanitarian Coordinator in the country said on Tuesday.  Matthias Schmale condemned the large-scale Russian assault on the capital Kyiv, as well as Dnipro and Kharkiv, […]
© WHO/Joël Lumbala A shipment of essential medical supplies for the Ebola response arrives at Bunia airport in Ituri province, DR Congo.

DR Congo Ebola outbreak: Nurses discharged after full recovery

This article is published in association with United Nations. Four nurses who fell ill with Ebola in the eastern Democratic Republic of the Congo (DRC) have been discharged from hospital after recovering from the often-fatal illness that sparked an international health alert.  “More recoveries are expected, especially when people are diagnosed early and able to access care, and […]
This article is published in association with United Nations.

Under fire, Kharkiv is already building for a peaceful tomorrow

This article is published in association with United Nations. Every day in Kharkiv begins with uncertainty: air raid sirens interrupt sleep; missiles strike residential neighbourhoods, industrial sites, and roads. Anxious citizens rush into metro stations during bombardments and children study underground. Yet amid the destruction, Ukraine’s second-largest city is doing something that may seem almost impossible […]
© UNOCHA A heavily damaged apartment building in Sloviansk, eastern Ukraine.

UN warns Ukraine war risks spiralling ‘out of control’

This article is published in association with United Nations. The United Nations on Thursday warned of a dangerous escalation in the war in Ukraine after a wave of large-scale Russian strikes and threats of further attacks, with Secretary-General António Guterres saying “the death spiral must stop.” Addressing the Security Council in New York, Mr. Guterres said […]
© WHO A frontline health worker in PPE (personal protective equipment) takes part in the Ebola response in eastern Democratic Republic of the Congo.

Ebola outbreak in DR Congo collides with conflict and hunger, WHO warns

This article is published in association with United Nations. The UN World Health Organization (WHO) on Wednesday warned that eastern Democratic Republic of the Congo faces a “catastrophic collision of disease and conflict” as a fast-spreading Ebola outbreak outpaces containment efforts in a region already battered by armed violence, mass displacement and acute hunger. WHO Director-General […]

Comments

  1. Well this is quite risky for us if companies are collecting data.

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com