AI toys spark privacy concerns as US officials urge action on data risks (thenationaldesk.com)

U.S. officials are raising alarms over AI-enabled toys, particularly those manufactured in China, due to potential data privacy risks for children. With the smart toy market projected to reach $25 billion globally by 2030, concerns have intensified following the sale of 200,000 units of the BubblePal toy, which uses DeepSeek’s large language model. This toy records voice data and conversation histories that are stored in cloud systems, raising fears about compliance with Chinese data-access laws. Representative Raja Krishnamoorthi has called for action, urging Education Secretary Linda McMahon to initiate a nationwide awareness campaign directed at educators and provide clear guidance to parents regarding the data handling of these toys. The House committee's recommendations highlight the importance of protecting child safety as AI toys become increasingly popular in the U.S. This situation underscores the intersection of technology and privacy in the growing AI/ML landscape, prompting a need for regulatory oversight to safeguard children from potential data misuse.