Will California Become The First State To Ban AI Toys For Kids?

by Aaron Leong — Wednesday, January 07, 2026, 11:59 AM EDT

A new wave of legislative scrutiny is hitting the toy box as California lawmakers weigh the potential psychological risks of artificial intelligence on the state’s youngest residents. Could we be seeing the country's first (short-term) ban on AI smart toys?

Last week, San Diego State Senator Steve Padilla introduced a bill that would impose a four-year moratorium on the manufacturing and sale of toys equipped with AI chatbot capabilities for children under 18. The proposal seeks to hit the pause button on an industry that is rapidly moving toward interactive, conversational playthings, such as plushies and robots that can engage in unscripted dialogue. Padilla argues that the technology is evolving much faster than our understanding of its impact on childhood development, asserting that children should not be used as "lab rats for Big Tech to experiment on."

The push for a ban comes in the wake of disturbing reports regarding the safety of generative AI. Investigations by advocacy groups like Public Interest Group Education Fund (PIRG) have found that some AI-integrated toys can be nudged into providing age-inappropriate advice, such as instructions on how to start fires with matches. More alarmingly, the legislation is fueled by concerns over companion chatbots. Proponents of the bill cited the case of a 14-year-old boy who ended his life after forming an intense emotional and romantic attachment to an AI character. Lawmakers fear that if these sophisticated, relationship-simulating algorithms are embedded into physical toys, the risk of social isolation, addiction, and psychological manipulation will only intensify.

The proposed four-year window is intended to give regulators and researchers enough time to establish a comprehensive safety framework. This would include strict protocols to prevent chatbots from discussing sexual content, encouraging self-harm, or collecting sensitive personal data from minors. If passed, the law would force major toy companies to rethink their upcoming product lines. For instance, industry giants like Mattel have been exploring partnerships with companies like OpenAI to bring smart features to their brands, but this legislation could effectively lock those products out of the nation’s largest consumer market until 2030.

Tech industry advocates and some business groups have expressed concern that a total ban is too blunt an instrument. They argue that such a broad moratorium could stifle innovation and prevent children from accessing beneficial AI tools, such as personalized educational tutors or language-learning companions. However, the momentum in Sacramento currently favors caution. Following a year where Governor Gavin Newsom vetoed a similar, broader chatbot bill for being too restrictive, Senator Padilla’s new focus specifically on physical toys represents a more targeted attempt to protect vulnerable users.

Top Image Credit: PIRG/TPIN/Rory Erlich (AI chatbot toys from FoloToy’s Kumma teddy bear in the back, then left to right, Curio’s Grok, Robot MINI from the retailer Little Learners, and Miko 3 from Miko)