AI-powered teddy bears could read personalized bedtime stories to kids within 5 years, the boss of a major toy producer said

• A major toymaker said that AI teddy bears could read personalized bedtime stories to kids by 2028.
• Allan Wong told the Financial Times that smart toys could know a child's name, school, and friends.

AI teddy bears that read bedtime stories to your children and teach them values could become a norm by 2028, according to a major toymaker.

Allan Wong, CEO of VTech Holdings — which makes toys and electronic learning aids for kids — told the Financial Times that the technology powering ChatGPT could be incorporated into toys by 2028, especially as the cost of AI will fall.

Wong pointed out that smart toys including teddy bears could use "AI to generate stories customized for the kid rather than reading from a book," because they will have access to personal information about the child.

"You can incorporate not only the kid's name but the kid's daily activities. [It] knows you go to which school . . . who your friends are. It can actually be telling a story and talking almost like a good friend," he said.

"The kids . . . can actually talk to the toy, and the toy can actually give [them] a response," he added. "So [there are] many, many possibilities."

Wong acknowledged that some of the possibilities including AI being privy to details about a child are "a little scary," and emphasized that "we should be aware of the dangers, on privacy, security, what kinds of things to teach and what not to teach."

The toymaker also noted that generative AI is "not mature" enough to be applied to toys just yet, but VTech will be looking out for the opportunity in the near future.

VTech did not immediately respond to Insider's request for comment about Wong's remarks.

Wong has a long way to go before AI technology is approved to be used in children's toys, especially as experts are sounding the alarm on current applications of generative AI.

Billionaire owner of Twitter Elon Musk is particularly concerned about the dangers saying people should be "cautious with AI" because it has the "potential of civilization destruction," in a Fox News interview.

Amid AI's rapid rise, governments around the world are beginning to consider proactive regulation of the technology.

CEOs of major tech companies including Google, OpenAI, and Microsoft headed to the White House in May to discuss safety concerns around AI with Vice President Kamala Harris, who said they have a "legal responsibility," to ensure products are safe.