You better not pout, you better not cry, AI Santa is coming to town. This year, Tavus has released a new Santa “Pal” just in time for the holidays: a video avatar that responds in real time, maintains conversational memory, and displays emotional awareness. It is among a small number of AI systems designed specifically for family settings, where children may be encountering an emotionally aware AI for the first time.

“We wanted to give a little bit of that classic ’90s mall Santa experience to as many people as possible,” said Hassaan Raza, co-founder and CEO of Tavus. “We’ve received a lot of positive feedback, especially internationally, where people might not be able to go see Santa.”

When Santa Becomes a First AI Experience

Designing emotionally aware AI for children raises obvious concerns, particularly when it may be a child’s first meaningful interaction with advanced AI. “We want parents to be supervising at all times,” Raza said. “This is a product for families, and it requires adult access. We have no intention of building a platform for kids alone.”

One of the thorniest questions surrounding any Santa, human or digital, is how much to preserve the fantasy without misleading or manipulating children. “Santa always discloses that it’s an AI when asked,” Raza explained. “It’s AI Santa powered by Tavus. We don’t pretend it’s the ‘real’ Santa if there’s any confusion.”

Memory, Trust, and What Comes Next

Memory is one of the central features that makes AI agents, like Tavus’ “Pals,” feel useful and engaging. I asked Raza where their Santa, designed to remember past conversations and family traditions, draws the line. “It would be pretty disappointing if, after meeting mall Santa, you got back in line and met him again only for him to ask who you were,” he said. “Everything Santa remembers is meant to further the experience.” One example he noted was parents sharing their children’s letters to Santa with the AI before the interaction.

While testing Tavus’ Santa for this article, I mentioned that I’d be away from my family for the holidays but close to friends. The visually consistent avatar responded in real time with on-brand cheer, acknowledging that being away from family can be difficult while reassuring me I was still likely to have a good holiday. For an adult, it’s a little thing, but it underscores how intentional emotional awareness is being built into these systems.

Like many AI systems, Santa’s ability to personalize interactions is part of what makes the experience feel meaningful, but it also raises broader questions about how emotionally aware AI is introduced to children. Raza sees Santa as a familiar, contained setting to explore those boundaries. “It’s no secret that for kids in the future, AI will be commonplace,” he said. As exciting as Tavus’ version may be for families unable to go out and meet Santa this year, what’s notable is how it marks a new phase of technological interaction. For children in particular, it represents the arrival of AI technology designed to engage them emotionally, something whose long-term effects, as with past waves of innovation, will only become clear over time.