The rapid proliferation of Artificial Intelligence (AI) in children’s everyday lives has accelerated the emergence of technology-enhanced toys (TETs) marketed as intelligent, adaptive, and educational. This chapter critically examines commercial AI-enabled toys targeting young children and explores how their technological features and claimed educational benefits are represented. Drawing on a PRISMA-informed search strategy, 699 records were identified on Amazon, resulting in 21 AI-labelled toys included for analysis. A thematic analysis of manufacturers’ descriptions was conducted to identify (1) technological characteristics and (2) reported educational benefits. Findings indicate that AI toys commonly incorporate features such as machine learning, speech and image recognition, gesture interaction, autonomous navigation, and conversational interfaces. Manufacturers frequently emphasize STEM learning, coding, problem-solving, creativity, and social–emotional development. However, explicit references to safeguarding, privacy policies, inclusion, accessibility, and AI literacy guidance for parents and educators are largely absent. While descriptions are predominantly gender-neutral, issues of algorithmic bias, equity, and disability inclusion remain unaddressed. Situated within broader discussions of societal polycrisis and child rights frameworks, the chapter argues that AI integration in early childhood play must be approached critically and systemically. Beyond marketing claims, there is a need for empirical research examining children’s actual engagement with AI toys, as well as clearer ethical standards regarding data protection, transparency, and inclusion. The chapter concludes that AI may enrich playful learning environments, but only if guided by child-centred design principles, robust policy frameworks, and sustained interdisciplinary research.