From plush figures to digital pets, a new class of AI toys is emerging — built not around screens or sensors, but around memory, language and emotional awareness
Updated
March 17, 2026 1:02 AM
Spielwarenmesse toy fair. PHOTO: SPIELWARENMESSE
Spielwarenmesse in Nuremberg is the global meeting point for the toy industry, where brands and designers preview what will shape how children play and learn next. At this year’s fair, one message stood out clearly: toys are no longer built just to entertain, but to listen, respond and grow with children. Tuya Smart, a global AI cloud platform company, used the event to show how AI-powered toys are turning familiar formats into interactive companions that can talk, react emotionally and adapt over time.
The company’s central argument was simple but far-reaching. The next generation of artificial intelligence toys will not be defined by motors, sensors or screens alone, but by how well they understand human behavior. Instead of being single-function objects, smart toys for children are becoming systems that combine language models, emotion recognition and memory to support ongoing interaction.
One of the most talked-about examples was Tuya Smart’s Nebula Plush AI Toy. At first glance, it looks like a soft, expressive plush figure. Inside, it uses emotional recognition to change its LED facial expressions in real time. If a child sounds sad or excited, the toy’s eyes respond visually. It supports natural conversation, reacts to hugs and touch and combines storytelling, news-style updates and interactive games. Over time, it builds memory, allowing it to behave less like a gadget and more like an interactive AI toy that recalls past interactions.
Another example was Walulu, also developed using Tuya’s AI toy platform. Walulu is an AI pet built around personalization. It can detect up to 19 emotional states and speak more than 60 languages. It connects to major large language models such as ChatGPT, Gemini, DeepSeek, Qwen and Doubao. Through simple app-based controls, users choose traits like cheerful, quiet, curious or thoughtful. Those choices shape how Walulu talks and reacts. Instead of repeating scripts, it adjusts its tone and behavior over time. The result is not a novelty item, but an emotionally responsive AI toy that feels consistent in daily use.
Tuya also showed how educational AI toys can extend into learning and exploration. Its AI Learning Camera blends computer vision with interactive content. When it recognizes an object, it links it to cultural and learning material. If a child points it at a foreign word, it offers real-time pronunciation and translation. It can also turn drawings into digital artwork, encouraging active creativity rather than passive screen time. In this sense, AI toys for kids are becoming tools for learning as much as play.
These products point to a larger strategy. Tuya is not just making toys — it is building the AI toy development platform behind them. Through its AI Toy Solution, developers can design a toy’s personality, memory logic and behavior without training models from scratch. The system integrates with leading AI models and supports multi-turn conversation and emotional feedback, turning standard hardware into responsive AI companions.
The platform supports multiple development paths. Brands can use ready-to-market OEM solutions, add AI to existing products or build custom toys around their own characters. Plush toys, robots, educational tools and wearables can all become AI-powered toys without changing their physical design.
Because these products are made for children and families, safety is built in. Tuya’s system includes parental controls, conversation history review and content management. It supports standards such as GDPR and CCPA with encryption and data localization.
From a business standpoint, Tuya’s pitch is speed and scale. The company says its AI toy infrastructure can cut development time by more than half and reduce R&D costs by up to 50 percent. Its AIoT network spans over 200 countries and supports more than 60 languages, making global deployment of AI toys easier.
What emerged at Spielwarenmesse 2026 was not just a lineup of smart gadgets, but a clear shift in the category. AI toys are evolving into emotionally aware systems that talk, listen, remember and adapt. Their value lies not in sounding clever, but in fitting naturally into everyday life.
The fair did not present AI toys as a distant future. It showed them as products already entering the mainstream. The real question now is not whether toys will use AI, but how carefully that intelligence is designed for children.
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Where Hollywood magic meets AI intelligence — Hong Kong becomes the new stage for virtual humans
Updated
February 7, 2026 2:18 PM
William Wong, Chairman and CEO of Digital Domain. PHOTO: YORKE YU
In an era where pixels and intelligence converge, few companies bridge art and science as seamlessly as Digital Domain. Founded three decades ago by visionary filmmaker James Cameron, the company built its name through cinematic wizardry—bringing to life the impossible worlds of Titanic, The Curious Case of Benjamin Button and the Marvel universe. But today, its focus has evolved far beyond Hollywood: Digital Domain is reimagining the future of AI-driven virtual humans—and it’s doing so from right here in Hong Kong.
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“AI and visual technology are merging faster than anyone imagined,” says William Wong, Chairman and CEO of Digital Domain. “For us, the question is not whether AI will reshape entertainment—it already has. The question is how we can extend that power into everyday life.”
Though globally recognized for its work on blockbuster films and AAA games, Digital Domain’s story is also deeply connected to Asia. A Hong Kong–listed company, it operates a network of production and research centers across North America, China and India. In 2024, it announced a major milestone—setting up a new R&D hub at Hong Kong Science Park focused on advancing artificial intelligence and virtual human technologies. “Our roots are in visual storytelling, but AI is unlocking a new frontier,” Wong says. “Hong Kong has been very proactive in promoting innovation and research, and with the right partnerships, we see real potential to make this a global R&D base.”
Building on that commitment, the company plans to invest about HK$200 million over five years, assembling a team of more than 40 professional talents specializing in computer vision, machine learning and digital production. For now, the team is still growing and has room to expand. “Talent is everything,” says Wong. “We want to grow local expertise while bringing in global experience to accelerate the learning curve.”
Digital Domain’s latest chapter revolves around one of AI’s most fascinating frontiers: the creation of virtual humans.
These are hyperrealistic, AI-powered virtual humans capable of speaking, moving and responding in real time. Using the advanced motion-capture and rendering techniques that transformed Hollywood visual effects, the company now builds digital personalities that appear on screens and in physical environments—serving in media, education, retail and even public services.
One of its most visible projects is “Aida”, the AI-powered presenter who delivers nightly weather reports on the Radio Television Hong Kong (RTHK). Another initiative, now in testing, will soon feature AI-powered concierges greeting travelers at airports, able to communicate in multiple languages and provide real-time personalized services. Similar collaborations are under way in healthcare, customer service and education.
“What’s exciting,” says Wong, “is that our technologies amplify human capability, helping to deliver better experiences, greater efficiency and higher capacity. AI-powered virtual humans can interact naturally, emotionally and in any language. They can help scale creativity and service, not replace it.”
To make that possible, Digital Domain has designed its system for compatibility and flexibility. It can connect to major AI models—from OpenAI and Google to Baidu—and operate across cloud platforms like AWS, Alibaba Cloud and Microsoft Azure. “It’s about openness,” says Wong. “Our clients can choose the AI brain that best fits their business.”
Establishing a permanent R&D base in Hong Kong marks a turning point for the company—and, in a broader sense, for the city’s technology ecosystem. With the support of the Office for Attracting Strategic Enterprises (OASES) in Hong Kong, Digital Domain hopes to make the city a creative hub where AI meets visual arts. “Hong Kong is the perfect meeting point,” Wong says. “It combines international exposure with a growing innovation ecosystem. We want to make it a hub for creative AI.”
As part of this effort, the company is also collaborating with universities such as the University of Hong Kong, City University of Hong Kong and Hong Kong Baptist University to co-develop new AI solutions and nurture the next generation of engineers. “The goal,” Wong notes, “is not just R&D for the sake of research—but R&D that translates into real-world impact.”
The collaboration with OASES underscores how both the company and the city share a vision for innovation-led growth. As Peter Yan King-shun, Director-General of OASES, notes, the initiative reflects Hong Kong’s growing strength as a global innovation and technology hub. “OASES was set up to attract high-potential enterprises from around the world across key sectors such as AI, data science, and cultural and creative technology,” he says. “Digital Domain’s new R&D center is a strong example of how Hong Kong can combine world-class talent, technology and creativity to drive innovation and global competitiveness.”
Digital Domain’s story mirrors the evolution of Hong Kong’s own innovation landscape—where creativity, technology and global ambition converge. From the big screen to the next generation of intelligent avatars, the company continues to prove that imagination is not bound by borders, but powered by the courage to reinvent what’s possible.