Barbie-Maker Mattel To Use ChatGPT To Design New Toys

Barbie-maker Mattel has signed a new deal with OpenAI to use its artificial intelligence (AI) tools to design new toys and in some cases, power them. The iconic toymaker is expected to announce its first “AI-powered product” later this year, to enhance “fan engagement in a safe, thoughtful, and responsible way".

The collaboration is still at an early stage, with the toy maker also planning to create digital assistants based on Mattel characters.

“We plan to announce something towards the tail end of this year, and it's really across the spectrum of physical products and some experiences,” Josh Silverman, Mattel's chief franchise officer, told Fortune.

“Leveraging this incredible technology is going to allow us to really reimagine the future of play.”

In addition to product development, Mattel is hoping to utilise OpenAI's enterprise tools, such as ChatGPT Enterprise, across its internal operations.

“The idea exploration phase of creative design for companies like Mattel and many others, that's a critical part of the workflow,” said Brad Lightcap, OpenAI's chief operating officer.

“As we think about how AI builds tools that extend that capability, I think we're very lucky to have partners like Mattel that we can work with to better understand that problem.”

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Mattel's struggles

The development comes in the backdrop of challenges that the global toy industry is facing. Owing to economic uncertainty, customers are spending cautiously, and Mattel, like other toy manufacturers, has been battling reduced demand and rising operational costs.

At an investment conference in March, earlier this year, Mattel CEO Ynon Kreiz said the company had turned into an IP [intellectual property] company from being a toy manufacturer.

While Mattel's toy business seeks inspiration, the release of the blockbuster Barbie movie in 2023, starring Margot Robbie, has allowed the company to diversify its offerings and bet big on its popular IPs. Currently, Mattel is filming two movies, “Masters of the Universe” in London and “Matchbox” in Morocco.

“We have 14 other movies and TV products in development,” said Mr Kreiz. “You don't need a Barbie movie success,” to have a positive impact on the company.