Artificial intelligence has been around for some time but today it is more sophisticated and the consequences of its use are more far reaching than many anticipated. It is embedded in toys, chatbots, gaming ecosystems, learning platforms, retail experiences, and connected products used by children and teens worldwide and while it brings benefits it also brings risks
Many companies are now asking: “Is AI going to be banned for kids?”
The short answer: No.
The more accurate answer: AI involving minors is entering a new era of accountability — and companies must design and deploy accordingly.
Importantly, this responsibility does not fall only on AI model developers. It also applies to companies integrating third-party AI into their platforms, products, and services, even if AI operates “in the background.”
AI requires privacy and safety by design for all users but in particular appropriate measures are required for vulnerable users such as children.
Industry Confusion
Recent headlines and regulatory activity have lead to confusion for some companies trying to get their heads around:
Retailers are cautious.
Toy manufacturers are evaluating risk.
EdTech and gaming platforms are reassessing integrations.
Product teams are unsure how far regulation may extend.
However, there is not a blanket prohibition of AI for children.
We are seeing a global shift toward risk-based governance, transparency, and demonstrable safeguards.
Developers and Deployers: Both Are Accountable
There is a distinction between:
Both are accountable.
A platform embedding a generative chatbot.
A toy licensing voice AI.
A gaming company integrating real-time AI interaction.
An online service using AI-driven personalization.
Even if the AI engine is a third-party, the company deploying it remains accountable for:
The Global Direction Is Clear
Across jurisdictions, there are increasing requirements:
The legal frameworks vary, but the expectation is consistent:
If your AI system, or AI-enabled product, can reach minors, you must demonstrate how they are protected. Download PRIVO's Quick Guide to Regulations to learn more about regulations and frameworks governing AI.
A Critical Distinction: AI Companion vs. AI-Enabled Product
Not all AI carries the same exposure.
An AI companion system designed to simulate emotional engagement face heightened scrutiny around:
An AI-enabled product trigger obligations based on:
Regulators are increasingly examining design, documentation, and deployment context not just technology labels. Precision in positioning and implementation matters.
The Five Questions Companies Should Be Answering Now
Whether you are building AI models or integrating third-party AI into your services, your compliance strategy should clearly address:
1. Age Awareness: How do you distinguish between adults, teens, and children without disproportionate data collection?
2. Verifiable Parental Consent (VPC): Are you obtaining compliant parental consent where required?
3. Transparency: Can parents and youth understand how AI functions, what data it uses, and what risks may exist?
4. Risk & Harm Mitigation: Have you documented and mitigated potential harms, including manipulation, inappropriate outputs, bias, or over-engagement?
5. Governance & Oversight: Can you demonstrate compliance across jurisdictions, including COPPA, GDPR, UK Children’s Code, EU AI Act, and emerging U.S. state requirements?
Regulators are not simply reviewing privacy policies.
They are asking:
Regulation Is Moving Toward Accountability — Not Prohibition
There is currently:
What is increasing is:
Companies that treat AI integration as a technical add-on risk exposure.
Companies that embed youth safeguards into system design will scale with confidence.
Responsible AI Requires Operational Infrastructure
Responsible AI is not a statement. It is a system.
Companies must operationalize:
This is particularly critical for companies integrating third-party AI, where governance gaps often arise.
How PRIVO Supports Companies Building or Integrating AI
Industry has a special responsibility to children and teens. As an FTC-approved COPPA Safe Harbor since 2004, PRIVO helps companies embed responsible AI practices into both AI development and AI integration.
Through our Kids Privacy Assured Program and privacy technology platform, PRIVO supports organizations to:
PRIVO helps you demonstrate regulatory compliance and responsible deployment.
The Strategic Reality
AI involving minors is not being banned. It is being governed. The companies that will win in this next phase are those who treat youth protection not as a compliance checkbox, but as foundational system architecture.
Retailers are asking.
Regulators are asking.
Investors are asking.
Can you demonstrate how your AI interacts with minors — and how they are protected?
That is no longer optional.
Integrating AI into your platform or product?
Before launch, or before your next retailer, regulator, or investor review, ensure your AI deployment is youth-compliant by design.
PRIVO helps companies assess integration risk, implement age assurance and parental consent controls, and demonstrate responsible AI governance.
Contact PRIVO to evaluate your AI integration readiness.