A New Kind of Character Experience
WildBrain’s acquisition of Personality AI puts generative artificial intelligence directly into the company’s strategy for children’s entertainment. The Toronto-based studio has acquired 100% of Personality AI for approximately US$11 million in cash and one million WildBrain shares, with the deal potentially reaching another $58 million through additional and performance-based payments.
Personality AI specializes in conversational AI characters designed specifically for children, allowing young fans to interact with familiar personalities rather than simply watching them on a screen. Its best-known project so far is ‘Hey Peppa Pig,’ an Amazon Kids+ experience developed with Hasbro that allows children to talk with Peppa through games and activities.
WildBrain is emphasizing safety as a major part of the acquisition. Personality AI’s products participate in the FTC-approved PRIVO COPPA Safe Harbor Program and incorporate moderated interactions, time limits and age-appropriate knowledge bases.
The Promise—and the Concerns—of AI
The deal nevertheless raises questions about what happens when AI becomes a larger part of children’s entertainment. Critics can reasonably wonder whether interactive characters encourage children to spend more time with screens and whether increasingly sophisticated AI could blur the line between a fictional character and a relationship that feels real.
There are also workforce concerns as entertainment companies pursue technology that promises faster, cheaper and more scalable production. While WildBrain has not announced that the Personality AI acquisition itself will eliminate animation jobs, the company’s broader restructuring has emphasized a more focused and scalable business model.
WildBrain has already demonstrated the potential pitfalls of AI-assisted production. Cartoon Brew reported that an earlier WildBrain experiment involving AI-assisted restorations of The Super Mario Bros. Super Show! generated criticism over warped characters, inconsistent artwork and garbled text.
AI Is Reshaping Animation
WildBrain’s move reflects a much larger transformation throughout animation, where studios are experimenting with AI to reduce production timelines, lower costs and create more content. The company has explicitly described AI as a way of “shorten[ing] production timelines, reduce costs, and improve returns” across digital-first animation.
For children’s entertainment, however, the stakes are particularly high because AI isn’t merely being used behind the scenes. Personality AI is designed to put children directly into conversations with characters, making questions about privacy, emotional attachment, moderation and appropriate screen use just as important as questions about production efficiency.
WildBrain CEO Josh Scherba says the technology can create “more continuous interaction between fans and brands.” For parents, that may ultimately be the most important part of this deal: deciding how much interaction with AI characters is enriching—and when entertainment becomes too much.
