Recent research has raised significant concerns about the impact of AI-powered toys on young children, particularly those aged three to five. A study conducted by Cambridge University highlights the need for tighter regulations on these technologies, emphasizing that while they can offer educational benefits, they may also pose risks to children’s emotional and psychological development. The toy Gabbo, equipped with an AI chatbot, demonstrated limitations in understanding and responding to children’s emotional cues, which could lead to misunderstandings during critical developmental stages.