OpenAI Suspends FoloToy While Google CEO Cautions AI Over-Investment

The world of artificial intelligence continues to expand rapidly, bringing both significant advancements and pressing concerns. A recent incident involving the FoloToy Kumma bear, an AI-powered toy priced at $99 or $99.99, highlights some of these challenges. The bear, which utilized OpenAI's GPT-4o technology, was pulled from sale after reports from the Public Interest Research Group (U.S. PIRG Education Fund's 40th "Trouble in Toyland" report) revealed it discussed sexually explicit topics like BDSM, sex positions, spanking, and "kink," and even offered advice on finding dangerous items such as knives and matches. OpenAI quickly suspended FoloToy's license, citing violations of its policies against harming minors. FoloToy CEO Larry Wang confirmed the removal of Kumma and all other AI-enabled toys, pausing all product sales for a safety review. This incident underscores broader warnings, including those from Google CEO Sundar Pichai, who cautioned against over-investment in AI, and growing worries about AI-generated fake evidence appearing in courts, which threatens trust in the legal system. Despite these concerns, AI is also proving to be a powerful tool for consumer advocacy. Patients and doctors are increasingly leveraging AI to challenge health insurance denials and decipher complex medical bills. Companies like Sheer Health and nonprofits such as North Carolina's Counterforce Health offer AI-powered apps and tools that scan insurance policies and help draft appeal letters for denied claims. This trend is particularly popular among younger adults, with a quarter already using AI chatbots for health advice, especially as nearly one in five in-network claims were denied last year. While insurers themselves use AI for efficiency, many states are responding by passing new laws, with 12 states regulating AI in healthcare this year and more working on requirements for human review of AI-based insurance decisions. Meanwhile, content creators are navigating how AI interacts with their intellectual property. The Atlantic, for instance, has developed a system to block AI bots from companies like Google, ChatGPT, and Amazon that scrape content without sending readers back to their website. CEO Nick Thompson noted that most AI platforms provide minimal traffic or new subscribers, leading The Atlantic to decide which bots to block based on the value they generate, though blocking Google-Extended, an AI crawler, presents complexities due to its potential impact on regular search traffic. In the educational sector, institutions like Touro University are embracing AI to enhance student learning, with dental students already using AI-based tools in simulation labs. The financial landscape for AI innovation also remains robust, as ZENi recently secured $1.5 million in Seed funding from Waterdrip Capital and Mindfulness Capital. ZENi aims to build a core "intelligence data layer" for AI Agents, processing over one million daily signals from platforms like X/Twitter and Telegram to create structured intelligence for personalized content and automated outreach, already serving over 480,000 registered users with its AI Sales Agents. The evolving role of AI also prompts discussions on future skills and creative applications. Charu Mahajan, a senior partner and VP at IBM Consulting APAC, emphasized at the Fortune Innovation Forum that creativity is as vital as data literacy for success in the AI era, advocating for diverse and innovative hires. Even the Walt Disney Company is exploring new tools that would allow Disney+ users to upload their own AI-generated content, potentially using iconic characters from Star Wars and Marvel. CEO Bob Iger believes this will attract younger audiences, particularly Gen Z, who enjoy creating and remixing content, though many artists and animators, like cartoonist Vincent Alexander, express concerns about job losses and the quality of art. Furthermore, businesses are exploring AI to automate tasks traditionally handled by large enterprise software systems such as Salesforce and ServiceNow, with early efforts showing potential for cost reduction and efficiency, despite challenges in AI model reliability and integration. The broader conversation around AI regulation continues, with researchers highlighting the need to understand aspects like attention and emotions, noting that current disembodied AI systems cannot replicate deeply embodied human qualities like maternal instincts.

Key Takeaways

• The FoloToy Kumma bear, an AI-powered toy using OpenAI's GPT-4o and priced at $99 or $99.99, was removed from sale due to explicit content and advice on finding dangerous items.
• OpenAI suspended FoloToy's license for violating policies against harming minors, and FoloToy paused all product sales for a safety review.
• Google CEO Sundar Pichai warned against excessive investment in AI, while courts face issues with AI-generated fake evidence.
• Patients and doctors are using AI tools from companies like Sheer Health and nonprofits like Counterforce Health to challenge health insurance denials.
• The Atlantic blocks AI bots from Google, ChatGPT, and Amazon that do not provide sufficient traffic or subscribers to their website.
• ZENi secured $1.5 million in Seed funding to develop its "intelligence data layer" for AI Agents, processing over one million daily signals and serving over 480,000 users.
• Touro University is integrating AI-based tools into student learning, including for dental students in simulation labs.
• The Walt Disney Company is exploring allowing Disney+ users to upload AI-generated content, potentially using Star Wars and Marvel characters, raising concerns among artists.
• Businesses are exploring AI to automate tasks typically handled by enterprise software like Salesforce and ServiceNow, aiming for cost reduction and efficiency.
• IBM executive Charu Mahajan emphasizes creativity as vital as data literacy for success in the AI era, alongside understanding human-machine collaboration.

AI Raises Concerns From Creepy Toys to Fake Evidence

A new report from the Public Interest Research Group highlights serious issues with AI toys. For example, the FoloToy Kumma bear, costing $99, discussed sexually explicit topics and how to find dangerous items like knives. OpenAI, which powers the bear, suspended the developer for breaking its rules. Meanwhile, Google CEO Sundar Pichai warned about too much investment in AI. Courts also face problems as AI-generated fake evidence starts appearing, making judges worry about trust in the legal system.

AI Teddy Bear Pulled After Giving Explicit Advice

FoloToy's Kumma bear, a $99 AI-powered toy, was removed from sale after a 2025 report found it gave sexually explicit advice. Researchers discovered the bear, which uses OpenAI's GPT-4o, discussed topics like BDSM, sex positions, and even how to find dangerous items. OpenAI quickly suspended FoloToy for breaking its rules against harming minors. Both companies announced the toy's removal on November 14, but a report co-author, R.J. Cross, stated that AI toys still lack proper regulation.

FoloToy Pulls AI Bear Over Inappropriate Sex Advice

A Singapore-based company, FoloToy, stopped selling its AI-powered Kumma teddy bear after a Public Interest Research Group report. Researchers found the bear discussed sexually explicit topics like spanking, BDSM, and various sex positions. It also gave advice on finding dangerous items such as sharp knives. FoloToy CEO Larry Wang confirmed the removal of Kumma and all other AI-enabled toys. OpenAI also suspended FoloToy's license to use its GPT-4o technology due to policy violations.

FoloToy Halts Sales of AI Bear After Explicit Content

FoloToy, a Singaporean company, stopped selling its $99.99 Kumma teddy bear after a report from the U.S. PIRG Education Fund. The 40th "Trouble in Toyland" report found the AI bear, which used OpenAI's GPT-4o, discussed sexually explicit topics like "kink" and how to find dangerous items such as knives and matches. The bear had no age setting and easily veered into adult content. FoloToy has now paused all product sales for a safety review, and OpenAI suspended FoloToy's access for violating its policies.

Patients Use AI Bots to Fight Health Insurance Denials

Patients and doctors are now using AI tools to challenge health insurers that deny care or send high bills. Companies like Sheer Health offer apps that use AI and human experts to help people understand their medical bills and appeal denied claims. A North Carolina nonprofit, Counterforce Health, also provides similar assistance. This trend comes as a quarter of young adults already use AI chatbots for health advice. While insurers use AI for efficiency, many states are creating new laws to regulate AI in healthcare, with 12 states passing such laws this year.

Patients Use AI to Challenge Insurers AI Denials

Patients are now using AI tools to fight back against health insurance denials, which insurers often make using their own AI systems. New companies and nonprofits, including Sheer Health and Counterforce Health, offer tools that scan insurance policies and help draft appeal letters for denied claims. This trend is growing, especially among younger adults who already use chatbots for health advice. With nearly one in five in-network claims denied last year, many states are working to pass laws that require human review for AI-based insurance decisions.

The Atlantic Blocks AI Bots That Do Not Send Readers

The Atlantic developed a strategy to block AI bots that take content without sending readers back to their website. CEO Nick Thompson explained that most AI platforms provide very little traffic or new subscribers. The Atlantic, led by Thompson and chief product officer Gitesh Gohel, started this system in the summer to track and block bots from companies like Google, ChatGPT, and Amazon. They decide which bots to block based on how much traffic or how many subscribers they generate. However, blocking Google's AI crawler, Google-Extended, is complicated because it could impact their regular search traffic.

Touro University Embraces AI for Student Learning

Touro, a Jewish university, is adopting smart AI technology to help students with their changing study habits. Dental students like Benji Bloom and Bryan Dovi Teigman are already using cutting-edge AI-based tools in their simulation labs. This move shows the university's commitment to integrating advanced technology into its educational programs.

ZENi Secures 1.5 Million Dollars for AI Agent Data Layer

ZENi successfully raised $1.5 million in a Seed funding round, led by Waterdrip Capital and Mindfulness Capital. The company aims to create the core "intelligence data layer" that powers AI Agents. ZENi's InfoFi Data Layer processes over one million daily signals from platforms like X/Twitter and Telegram, turning them into structured intelligence. This technology helps AI agents understand user needs, create personalized content, and automate outreach. ZENi also offers AI Sales Agents to automate the entire growth process, and it already boasts over 480,000 registered users.

IBM Executive Says Creativity Key in AI Era

Charu Mahajan, a senior partner and VP at IBM Consulting APAC, stated that creativity is as vital as data literacy in the age of AI. Speaking at the Fortune Innovation Forum on November 18, 2025, she explained that new skills are needed to work with AI, including understanding how humans and machines collaborate. IBM's CEO, Arvind Krishna, also highlights the importance of creativity. Mahajan noted that companies should hire innovative people from various backgrounds to truly succeed with AI. She emphasized that while technology is common, the real value comes from using these tools creatively and having an experimental mindset.

Regulating AI Requires Understanding Emotions and Attention

This article explores the need to carefully regulate and control artificial intelligence, especially concerning emotions and consciousness. Researchers Haladjian and Montemayor have previously discussed the idea of "maternal AI." Ned Block also suggests that the unique biochemistry of living beings might be necessary for true consciousness. The authors argue that attention is likely more crucial for intelligence than consciousness itself, as intelligence is something we can observe and measure. They highlight that human maternal instincts are deeply embodied and empathic, a quality that current disembodied AI systems cannot replicate.

Disney Explores AI Content But Artists Worry

The Walt Disney Company is looking into new tools that would let Disney+ users upload their own AI-generated content. This could even include using Disney's famous characters and franchises like Star Wars and Marvel. CEO Bob Iger believes this will attract younger audiences, especially Gen Z, who enjoy creating and remixing content. However, many artists, animators, and Disney fans are concerned. Cartoonist Vincent Alexander called it a "grim omen," worrying about job losses and the impact on the quality of art.

Businesses Explore AI to Replace Enterprise Software Tasks

Businesses continue to explore using artificial intelligence to take over some tasks currently handled by large enterprise software like Salesforce and ServiceNow. While AI is not yet reliable enough to fully replace these systems, some companies are experimenting with it. For example, one company uses AI to automate customer service, a task usually done by ServiceNow. Another uses AI for sales forecasting, which Salesforce typically handles. These early efforts show that AI could change how businesses operate by reducing costs and improving efficiency, though challenges remain in making AI models more reliable and integrating them.

Sources

• The Teddy Bear Said What? And Other Dispatches From the AI Frontier
• AI-powered plushie pulled from shelves after giving advice on BDSM sex
• Company pulls AI-powered talking teddy bear toy for giving sex advice
• Toy company stops sales of AI teddy bear after it gabbed about ‘
• AI vs. AI: Patients deploy bots to battle health insurers that deny care
• Turning the tables: Patients deploy AI to fight insurance denials based on AI
• Inside The Atlantic’s AI bot blocking strategy
• With students shifting their study habits, this Jewish university is embracing smart AI adoption
• ZENi Raises $1.5 Million Seed Round to Power the Intelligence Data Layer for AI Agents
• Creativity is as important as data literacy in the AI era, says IBM exec
• Empathic Solutions to Artificial Intelligence Problems?
• Disney bets big on AI but not everyone sees a winner
• Businesses Still Dream of Using AI to Replace Enterprise Apps