AI Toys: The Next Pop Mart of the AI Era?

In 2025, the hottest parenting gadget isn’t a stroller or an iPad—it’s an AI-powered toy.

These cute, chatty companions have evolved far beyond singing plushies. They now talk, remember, and even empathize. And behind this playful surface lies one of the fastest-growing intersections of tech and consumer culture: AI × IP.

🔹 The Rise of “AI + IP”

Chinese startup Yueran Innovation recently raised 200 million RMB, thanks to exclusive licenses with beloved franchises like Peppa Pig, Ultraman, and Nai Long.
Its CEO’s ambition? “To become the Pop Mart of the AI era.”

Across the sector, more companies are racing to combine AI tech with pop culture IPs. Investors agree: a famous IP cuts customer acquisition costs and speeds up market adoption.

The formula is simple but powerful—AI + IP = emotional resonance + commercial scalability.

🔹 Two Main Categories: AI Pets and AI Toys

The industry now splits into two tracks:
1️⃣ AI Pets — emotional companions for adults.
2️⃣ AI Toys — interactive, educational playmates for kids.

Leading players include Ropet, Fuzai, CodoPal, and Yueran’s BubblePal/CocoMate.
Among them, Yueran leads in both funding and market visibility, thanks to its hybrid of collectible-style design and iconic IP licensing.

🔹 Why IP Matters

As Alton, co-founder of EndlessLove Tech, notes: “Large models like DeepSeek showed IP owners that AI can literally bring characters to life.”
By integrating familiar faces into smart toys, brands lower development risk and instantly appeal to fans.

Investor Li Jiang adds: “A strong IP means you don’t need to overbuild. Fans project their affection onto the AI itself. That’s cost efficiency in action.”

Prices are rising, too—Yueran’s CocoMate Ultraman Edition sells for ¥799, double its earlier models.

🔹 The Real Challenge: Being “Authentically Alive”

The hardest part isn’t making toys talk—it’s making them in character.

To recreate an IP faithfully, developers must:
1️⃣ Train the model on all character stories to avoid “OOC” errors;
2️⃣ Capture emotional voice data that feels natural;
3️⃣ Optimize response time and contextual awareness.

It’s complex work—but lucrative. Margins for AI toys hover between 50–80%, and top-end models exceed 90%.

🔹 Reality Check: Not Quite a Pop Mart Yet

Despite investor buzz, consumer enthusiasm lags.
Return rates for AI plush toys reach 30–40% due to laggy responses, poor recognition, and steep prices.

Most adopt a “hardware + subscription” model, making them far pricier than traditional toys.

As Li Jiang puts it: “IP draws attention—but smart interaction keeps users.”

No AI toy has yet cracked the million-unit mark.
The Pop Mart dream? Still loading.