China’s AI toy boom: Huawei, JD.com, UBTech make big push into growing sector

Huawei Technologies in late November sold more than 10,000 units of its artificial intelligence toy, Smart Hanhan, in the first week of its release, as similar smart playthings seize a growing share of consumer spending worldwide.\nShenzhen-based Huawei’s AI-powered emotional support plush toy, which costs 399 yuan (US$57), provides a user with interactive companionship via movement recognition, voice and touch. For example, when a user asks Smart Hanhan to count sheep, it often adds playful comments or cheekily refuses to follow exact instructions.\nThe toy was designed to be compatible with other Huawei devices that run HarmonyOS 5.0 or later versions of the company’s mobile operating system. It also runs Huawei’s intelligent voice assistant, Xiaoyi, to provide natural conversation.\nOne buyer on JD.com, who declined to be identified, posted a comment that the toy’s features were “still a bit limited”, but added that it was expected in a first-generation product.\nSmart Hanhan marked the latest foray by Chinese technology companies into the growing global AI toy market.\nThis market is projected to be worth US$60 billion by 2033, from US$18.1 billion in 2024, according to research firm IMARK Group. It said the AI toy trend was “particularly strong” in North America and Asia, where “high internet penetration and smartphone usage facilitate online purchases”.\n\nWith support from Beijing, China’s AI toy sector was forecast to expand to 85 billion yuan by 2030, up from 24.6 billion yuan this year, according to data from Chinese research firm AskCI Consulting.\nSmart dolls and plush toys accounted for 28 per cent of China’s AI toy market in 2023, according to AskCI. It estimated that robots made up 22 per cent of the market, while educational and learning toys accounted for 13 per cent.\nIn 2024, Chinese start-up Haivivi launched an AI-powered smart toy called BubblePal, designed for children to engage in voice conversations and storytelling. The product is powered by large language models. Haivivi said that more than 200,000 units of BubblePal had been sold worldwide as of mid-2025.\nGrowing domestic demand has encouraged larger Chinese tech companies to join the ranks of AI toy vendors. Chinese e-commerce giant JD.com, for example, introduced its plush toy animal series, JoyInside, to the market a week before Huawei’s Smart Hanhan launch. Each JoyInside plush animal toy sells for 239 yuan.\nIn May, Shenzhen-based humanoid robot maker UBTech Robotics introduced Meng UU – a palm-sized doll with embedded AI – that enables it to interact with users. “It’s like putting a large language model into people’s pockets,” said Michael Tam, chief brand officer at UBTech.\nStanding about the height of an iPad, UBTech’s Wukong, also known as Alpha Mini, shares many features with Meng UU. Tam highlighted its educational function, noting that children can consult the toy robot to help with their homework.\n“You’ll see Wukong has many expressions; he converses by reading into your meaning, tone and even your facial cues,” said Tam. He said that children can consult Wukong regarding their schoolwork, leveraging its embedded large language model.\n“Wukong possesses a sense of empathy and the ability to form emotional connections,” said Tam.\n\n“Meng UU was designed for portability and companionship, and for providing emotional value,” Tam said. He pointed out that Wukong and Meng UU represented UBTech’s vision in the field of small-scale humanoid robots.\nInvestments in China’s intelligent toy sector have also picked up pace. In 2024, a total of 219 million yuan was invested in 13 AI toy initiatives, according to Chinese research firm IT Juzi. For the first six months of 2025, total investments in nine projects reached 224 million yuan.\nThe rushing into the AI toy space was meant to monetise AI, according to Zhang Yi, CEO and chief analyst at iMedia Consulting. “At this stage, toys are actually the fastest to monetise among AI applications, and the supply chain is already quite mature.”\nDemand for AI toys had also gone beyond children, Zhang added. “Among adults, especially those looking for emotional companionship and stress relief, and those attracted by fashion and tech, the interest spans all age groups, from young people to seniors, which points to a large and diverse market.”\n“Based on our research, AI toys are priced at around eight times the average price of traditional plush toys,” Zhang said. “That is a sizeable premium.”\nDrawing on his experience of owning a cat, He Jiabin, co-founder of AI-powered toy pet maker Ropet, said these toys were helping address the issue of loneliness in modern society.\n“This loneliness is not simply about being alone. It arises from fast-paced lives and an excessive focus on external striving, which can leave people emotionally numb and deprived of genuine emotional connection,” said He, a former ByteDance product designer.\n“Whether it’s a static designer collectible on a shelf or a real pet you care for, the core value lies in providing emotional support and a sense of presence.”\n