• Mattel has partnered with OpenAI to introduce AI-powered toys and games.
• The first AI product is expected to launch later this year.
• Mattel aims to address declining demand in the toy market through this technology.
• Safety, privacy, and appropriate play experiences will be prioritized in development.
• The collaboration also aims to enhance Mattel's operations with OpenAI's tools like ChatGPT Enterprise.

Mattel has teamed up with OpenAI to develop AI-powered toys and games, expecting to launch its first product later this year. This initiative aims to "bring the magic of AI to age-appropriate play experiences" with a strong emphasis on innovation, privacy, and safety, according to Channel News Asia and India Times.

As the toy industry faces declining consumer demand, Mattel intends to leverage this partnership to navigate economic challenges stemming from US trade policies. The company acknowledges the need to innovate, stating, "AI has the power to expand on that mission and broaden the reach of our brands," according to CBS News and Los Angeles Times.

The collaboration with OpenAI will not only focus on toy development but also incorporate advanced tools like ChatGPT Enterprise for enhancing product innovation across Mattel’s operations. This approach is expected to solidify Mattel’s leadership in innovation, said OpenAI's Chief Operating Officer, Brad Lightcap. He emphasized that the tools will enable productivity and creativity at scale, according to Reuters and Business Insider.

Moreover, safety and data privacy are at the forefront of this collaboration. Mattel is keenly aware of past controversies regarding data security in similar toy products and is committed to ensuring that any AI technology utilized will be both safe and secure for users, as indicated in statements from the company and corroborated by various reports, including those from CBS News and Los Angeles Times.