TORONTO - As parents hunt for gifts that will wow their kids this holiday season, Canadian child development and psychology experts say they should be wary of AI-powered toys because of possible harms, ranging from privacy and security violations to interference with children's creativity and development.

"Early childhood is a time where the developing brain is a little sponge. It's taking everything in and it is so malleable," said Dr. Nicole Racine, an Ottawa child psychologist and scientist at the CHEO Research Institute.

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