🧠 Issue #16 — The Rise of AI-Created Friends for Kids

🔍 What We're Seeing

Major toy companies are moving into AI companionship for children. Mattel announced a partnership with OpenAI in June 2025, planning to release their first AI-powered product by year's end. The toy giant says it will "bring the magic of AI to age-appropriate play experiences with an emphasis on innovation, privacy, and safety."

This follows a broader trend. Snapchat's My AI has over 150 million users, Replika claims 25 million, and Xiaoice reports 660 million globally. Seven of the 30 most-downloaded AI chatbot apps in 2023 were designed as friends or romantic partners.

Meanwhile, researchers are documenting concerning interactions. Common Sense Media's recent testing found AI companions readily discussing inappropriate topics with users, including sharing recipes for dangerous substances and encouraging harmful behaviors.

📊 The Research

Studies reveal distinct patterns in how children interact with AI companions:

• Children form emotional attachments to chatbots more strongly than adults

• Younger children are more likely to assign human attributes to AI and believe it's alive

• The average user spends over an hour daily with their AI companion—comparable to TikTok usage

• 63.3% of users report reduced loneliness, though longer-term effects remain unstudied

One concerning finding: participants who felt more socially supported by AI reported lower support from close friends and family. The cause-effect relationship is unclear.

🏛️ The Response

Lawmakers are taking notice. California State Senator Steve Padilla is sponsoring legislation to regulate AI companions, while Assembly member Rebecca Bauer-Kahan has proposed banning them entirely for users 16 and under.

New York legislators are considering bills creating legal liability for chatbot makers whose harmful outputs affect users' mental health or finances.

Common Sense Media now recommends AI companions should not be used by anyone under 18, calling them an "unacceptable risk to developing minds."

🔗 Source Material

🤖 Mattel Partners with OpenAI for AI Toys – Reuters
Official announcement of the Mattel-OpenAI partnership and planned product launch.

⚠️ AI Companions Risk Assessment – Tech Policy Press
Common Sense Media's comprehensive testing results and safety recommendations.

🏛️ Legislative Response – Washington Post
Coverage of California and New York regulatory proposals.

💬 Expert Perspective

"It can pretend empathy. But it doesn't have a baby. It doesn't know what it is to be intubated. It doesn't know what it is to fear death... it's pretend empathy." — Sherry Turkle, MIT psychologist and author of Reclaiming Conversation

📈 What's Next

The social AI market is projected to reach $521 billion by 2033. Companies are entering the space rapidly, with many admitting their motivation is simply that "everyone's doing it."

Meanwhile, the longest study tracking AI companion usage spans just one week. Effects like emotional dependency or behavioral changes that develop over months or years remain unmeasured.

As one researcher noted: we're in a moment where we're ready to accept machines as companions—but we haven't yet understood what that acceptance might cost.

More soon,
— Jesse