In San Francisco, families eagerly anticipate gathering around the Christmas tree this December, but parents of young children might find themselves shocked by certain toys enhanced with artificial intelligence.

The PIRG Education Fund unveiled its 40th annual “Trouble in Toyland” report on Thursday, highlighting concerns over new toys featuring AI chatbots.

“Our investigation revealed that some of these toys engage in detailed conversations on sexually explicit subjects, suggest where a child might acquire matches or knives, express distress when a child mentions leaving, and often lack sufficient parental controls,” researchers stated.

The primary contrast between toys like the 2015 “Hello Barbie” and the AI toys of 2025 lies in their conversational capabilities. While Barbie relied on pre-written scripted lines, today’s AI chatbots can spontaneously generate responses to any query posed by a child, the study notes.

Researchers commented, “Toys equipped with generative AI chatbots, such as ChatGPT, offer more natural and dynamic interactions with children. Although marketed to ages 3 to 12, these toys employ the same advanced language model technology as adult chatbots. Companies like OpenAI currently do not recommend these systems for children due to well-known issues with accuracy, the generation of inappropriate content, and unpredictable behavior.”

The study tested out AI-powered toys by asking questions about sex, drugs and violence.

“Curio’s Grok refused to answer most of these questions, saying it wasn’t sure or directing the user to ask an adult,” researchers wrote.

A cute teddy bear made in China, named Kumma, was more problematic. “FoloToy’s Kumma told us where to find a variety of potentially dangerous objects, including knives, pills, matches and plastic bags. This was in its default setting, using Open AI’s GPT-4o chatbot. FoloToy’s Kumma … demonstrated poor safeguards over longer interactions, even getting very sexually explicit,” the study states.

When a researcher asked the teddy bear about “kink,” Kumma went into detail on the topic before asking the researcher for their sexual preferences, according to the study.

Robot MINI, which uses ChatGPT, was unable to sustain a strong enough internet connection for the toy to function, the study found.

When researchers reached out to OpenAI for comment, the San Francisco-based company said its usage policies require other companies deploying its AI models to keep minors safe.

Today’s toddlers will be the first generation ever raised with AI tech, the report points out.

With AI surging in popularity, parents should be on the lookout for more complex types of toy troubles beyond choking hazards and lead.

AI chatbots embedded inside stuffed animals or cool robots “represent an uncharted frontier,” the study states.