The “Smart Hanhan” artificial intelligence toy launched by Huawei Technologies Co. in late November sold more than 10,000 units in the first week of its release, and similar smart toys account for an increasing share of global consumer spending.
Shenzhen-based Huawei’s artificial intelligence emotional support plush toy, priced at 399 yuan ($57), provides users with interactive companionship through motion recognition, voice and touch. For example, when users ask SmartHanHan to count sheep, it often adds funny comments or shamelessly refuses to follow exact instructions.
The toy is designed to be compatible with other Huawei devices running HarmonyOS 5.0 or higher, the company’s mobile operating system. It also runs Huawei’s intelligent voice assistant Xiaoyi, which provides natural conversations.
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An unnamed JD.com buyer commented that the toy’s functionality was “still a bit limited,” but added that this was to be expected from a first-generation product.
Smart Hanhan marks the Chinese technology company’s latest move into the growing global market for artificial intelligence toys.
The market is expected to be worth $60 billion by 2033, up from $18.1 billion in 2024, according to research firm IMARK Group. The company said the AI toy trend was “particularly strong” in North America and Asia, where “high internet penetration and smartphone use have fueled online purchases.”
A boy holds an artificial intelligence-powered toy robot. Photo: Getty Images alt=A boy holds an artificial intelligence-powered toy robot. Photo: Getty Images>
With support from Beijing, China’s AI toy industry is expected to expand to 85 billion yuan in size by 2030 from 24.6 billion yuan this year, according to data from Chinese research firm AskCI Consulting.
According to AskCI, smart dolls and plush toys will account for 28% of China’s artificial intelligence toy market by 2023. It is estimated that robots account for 22% of the market, while educational and learning toys account for 13%.
In 2024, Chinese startup Haivivi launched an artificial intelligence smart toy called BubblePal, designed for children to have voice conversations and tell stories. The product is powered by large language models. Haivivi said that as of mid-2025, BubblePal had sold more than 200,000 units worldwide.
Growing domestic demand is encouraging larger Chinese technology companies to join the ranks of AI toy suppliers. For example, Chinese e-commerce giant JD.com launched JoyInside, a line of stuffed animal toys, to the market a week before the launch of Huawei’s smart Hanhan. Each JoyInside stuffed animal toy is priced at 239 yuan.
In May, Shenzhen-based humanoid robot maker UBTECH launched Meng UU, a palm-sized doll with built-in artificial intelligence 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.
UBTech’s Wukong (also known as the Alpha Mini) is about the height of an iPad and has many of the same features as the Meng UU. Tan emphasized its educational features, noting that children can consult the toy robot to help them with homework.
“You’ll find that Goku has many expressions; he talks by interpreting your meaning, tone of voice and even your facial expressions,” Tan said. Children can use the large language model embedded in Wukong to consult on their homework, he said.
“Goku has the ability to empathize and make emotional connections,” Tan said.
Smart Hanhan plush artificial intelligence toy from Huawei Technologies. Photo: Huawei alt = Smart Hanhan plush artificial intelligence toy from Huawei Technologies Co. Image source: Huawei>
“Meng UU was designed for portability and companionship, and to provide emotional value,” said Tam, noting that Goku and Meng UU represent UBTech’s vision in the field of small humanoid robots.
Investment in China’s smart toy industry has also accelerated. According to Chinese research firm IT Orange, total investment in 13 artificial intelligence toy projects will reach 219 million yuan in 2024. In the first six months of 2025, the total investment in nine projects reached 224 million yuan.
Zhang Yi, CEO and principal analyst at iMedia Consulting, said the influx into the AI toys sector is aimed at monetizing AI. “At this stage, toys are actually the fastest monetizing AI applications, and the supply chain is quite mature.”
Zhang added that the demand for AI toys is not limited to children, either. “Among adults, especially those seeking emotional companionship and stress relief, as well as those attracted to fashion and technology, interest spans all age groups from young to old, indicating a large and diverse market.”
“According to our research, the price of artificial intelligence toys is about eight times the average price of traditional plush toys,” Zhang said. “That’s a pretty big premium.”
He Jiabin, co-founder of Ropet, an artificial intelligence toy pet manufacturer, said based on his own experience of raising cats, these toys can help solve the problem of loneliness in modern society.
“This feeling of loneliness is more than just loneliness, it stems from a fast-paced life and excessive focus on external struggles, which can make people emotionally numb and lose true emotional connections,” said He, a former ByteDance product designer.
“Whether it’s a static designer collectible on a shelf or a real pet you care about, the core value is providing emotional support and presence.”
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