Hasbro has launched artificial intelligence versions of 12 popular characters, including Optimus Prime, Megatron, and Mr. Potato Head, making them available for customer service, gaming, and brand experiences. The toy and games giant partnered with ElevenLabs, an AI company specializing in voice technology, to bring these characters to life in interactive settings. While the initiative aims to combat unauthorized AI versions of Hasbro's intellectual property, experts are raising concerns about how these AI characters could affect young audiences, even though the company says the products target ages 13 and up.

The characters are currently available for licensed use in what Hasbro calls "experiences and enterprise use cases." This means you might encounter an AI Optimus Prime as a brand ambassador in a video game, chat with Cobra Commander on a customer service line, or interact with the cast of Clue in a digital experience. Hasbro created an internal AI studio called Sixth Wall to produce animated likenesses of its characters, while ElevenLabs handles the voice and human-AI interaction components.

Hasbro also introduced "behavioral licensing," a new type of intellectual property protection that covers how characters act, think, and speak. The company developed a system called CharacterOS to maintain what it calls "safety guardrails," designed to prevent inappropriate responses. For example, asking Megatron about geopolitical conflicts while on a customer service call would likely yield no substantive response.

What Are Experts Most Concerned About?

Media literacy experts and researchers have identified several risks associated with AI character interactions, particularly for younger audiences. Matthew Johnson, director of education at MediaSmarts, a digital media literacy organization, explained that the appeal of these characters extends far beyond the stated 13-and-up target demographic.

"We've known for decades that everybody, but in particular young children, treat anything that behaves in any way as human, as though it is human, as though it has agency, as though it has an identity," Johnson said.

Matthew Johnson, Director of Education at MediaSmarts

This raises several interconnected concerns:

• Parasocial Relationships: Children may develop one-sided emotional bonds with AI characters, treating them as real friends or mentors despite the interaction being algorithmic and one-directional.
• Advertising Persuasion: Early evidence shows that advertising embedded in AI interactions is extremely persuasive, and children have difficulty recognizing when they're being marketed to, making them vulnerable to brand loyalty campaigns.
• Data Collection and Privacy: It remains unclear how Hasbro will collect, store, and use data from these interactions. The company could use conversations to gather insights on consumer preferences, product redesigns, or remake opportunities that would typically cost companies hundreds of thousands or millions of dollars to research through traditional methods.

Steve DiPaola, a professor and researcher at Simon Fraser University who has worked with AI assistants in educational settings, expressed concern about Hasbro's intellectual property approach. He noted that fictional characters like Optimus Prime are creative ideas that have evolved across different media and contexts, not fixed entities that can be definitively "brought to life".

"There is no Optimus Prime, Optimus Prime is an idea by creatives that was used in different situations and then put together. So the notion that somehow they're bringing him to life, I think, is a bit much," DiPaola stated.

Steve DiPaola, Professor and Researcher at Simon Fraser University

DiPaola also warned that commercialization could fundamentally change how fans perceive these characters. While interacting with an AI version of a beloved character might seem exciting, the experience could disappoint if the AI prioritizes selling merchandise over authentic storytelling.

How Is Hasbro Addressing Safety Concerns?

Hasbro stated that it is not currently developing AI products specifically targeted at young children and is actively participating in broader industry discussions about safety standards and voluntary guardrails for AI-enabled play experiences. The company used non-AI actors to provide the initial voice performances for the characters, and each character was built using authorized source material.

Frank Welker, the long-time voice actor for Megatron, appeared in a video released by Hasbro expressing enthusiasm about the project. "I know Megatron pretty well, and I would love to go in and ask him a few questions," Welker said, suggesting that even original voice talent sees potential in the AI versions.

However, experts argue that safety guardrails alone may not be sufficient. The fundamental issue is not whether the AI will say inappropriate things, but rather how the technology reshapes children's relationships with brands and fictional characters, and what data is collected in the process.

Why Is Hasbro Making This Move Now?

The company cited a specific business motivation: "millions of consumers are already encountering unauthorized versions of popular characters across chat, voice, gaming, and content creation platforms." By releasing official AI versions, Hasbro aims to control the narrative and monetize these interactions rather than ceding the space to unauthorized creators.

This reflects a broader trend in entertainment and celebrity management. DiPaola noted that agencies representing celebrities and intellectual property holders are increasingly exploring interactive AI experiences as a way to deepen fan engagement and create new revenue streams. Hasbro's move is part of this larger shift toward personalized, AI-mediated brand experiences.

The 12 characters currently available include Optimus Prime and Megatron from Transformers, Cobra Commander from G.I. Joe, Mr. Potato Head, and the full cast of Clue: Miss Scarlett, Colonel Mustard, Mayor Green, Chef White, Solicitor Peacock, and Professor Plum.

As AI voice technology becomes increasingly sophisticated and accessible through partnerships like the one between Hasbro and ElevenLabs, the intersection of entertainment, data collection, and child safety will likely become a more pressing policy issue. For now, the initiative stands as a test case for how major brands plan to leverage AI characters in customer-facing applications.