CNBC reports on efforts to develop artificial intelligence-based toys for kids and how they could risk children's privacy. Among the notable types of smart toys are smart companions, which learn and interact with children, and programmable toys that employ machine learning to educate kids. World Economic Forum’s Smart Toy Awards’ Judging Committee Chair and singer-songwriter Will.i.am said AI toys "will be smarter than the parent and gather all this data that could one day hurt the child" after the toy learns with the child for 15 years.