Dive Brief:
- Mattel is partnering with OpenAI to design AI-powered products and experiences for the toymaker's brands, the two companies announced Thursday.
- Mattel will use ChatGPT Enterprise as part of its product development and to better engage with its audiences. "We're pleased to work with Mattel as it moves to introduce thoughtful AI-powered experiences and products into its iconic brands, while also providing its employees the benefits of ChatGPT," OpenAI’s Chief Operating Officer Brad Lightcap said.
- The companies plan to develop "a series of products and experiences" for age-appropriate play experiences, the first of which they plan to announce later this year.
Dive Insight:
Mattel, which owns and operates popular toys like Barbie and Hot Wheels, is turning to OpenAI to help with product innovation while creating new forms of play along the way.
The manufacturer said it is prioritizing privacy and safety in the development process.
“Each of our products and experiences is designed to inspire fans, entertain audiences, and enrich lives through play,” Josh Silverman, Mattel’s chief franchise officer, said in a statement. “AI has the power to expand on that mission and broaden the reach of our brands in new and exciting ways."
In April last year, Mattel announced its intentions to use AI across its business as a cost-saving measure, with a team dedicated to AI efforts. CEO Ynon Kreiz told analysts the company planned to use AI to develop and integrate products. Mattel's goal was to save $200 million in costs by 2026.
Mattel last month warned of potential price increases amid tariff pressure and global trade uncertainty. In an earnings call, the toy manufacturer told analysts the company is diversifying its supply chain to mitigate the impact of tariffs.
