Ello, the AI reading companion designed to assist children who are struggling with reading, introduced a new product on Monday that enables kids to engage in the story-creation process.

The feature, called “Storytime,” utilizes AI to help children generate personalized stories by choosing from various settings, characters, and plots. For example, one story could feature a hamster named Greg performing in a talent show in outer space.

Kids can choose from a wide array of prompts, creating thousands of unique combinations.

Similar to Ello’s regular reading function, the AI companion—an engaging bright blue elephant—listens to the child read aloud and assesses their speech, correcting mispronunciations and missed words. If children are uncertain about how to pronounce a particular word, they can click on the question mark icon for additional assistance.

Storytime includes two reading modes: one where Ello and the child take turns reading, and another, simpler mode for younger readers, where Ello handles most of the reading.

AI-assisted story creation for children is not a new idea. In 2022, Amazon launched its own AI tool that generates animated stories for kids based on different themes and settings, such as underwater adventures or enchanted forests. Other startups, including Scarlet Panda and Story Spark, have also embraced this trend.

However, Ello asserts that its Storytime feature is unique due to its proprietary advanced AI system, which adapts to a child's responses and teaches essential reading skills using phonics-based strategies. The company claims that its technology surpasses OpenAI's Whisper and Google Cloud's speech API in performance.

The Storytime experience is customized to align with the user's reading level and weekly lessons. For instance, if Ello is assisting a first-grader in practicing the “ch” sound that week, the AI generates a story that deliberately includes words like “chair” and “cheer.”

Ello states that its engineering team has implemented safety measures to ensure the stories are appropriate for children. The company spent several months testing the product with teachers, children, and reading specialists. Initially, children can only choose from a predetermined set of story options, but the company envisions future iterations that will allow for greater involvement in the storytelling process.

Catalin Voss, co-founder and CTO of Ello, explained to TechCrunch, “If a teacher creates an open story with a child, they provide the [building blocks] through interactive dialogue. I imagine it would look quite similar to that. Kids prefer some guardrails at some level. It’s the blank paper problem. You ask a five-year-old, ‘What do you want the story to be about?’ And they kind of get overwhelmed.”

In addition to Storytime, the company recently launched its iOS app, broadening the reach of its AI reading coach to more users. Previously, it was limited to tablets, including iPads, Android tablets, and Amazon devices.

With over 700,000 books read and tens of thousands of families served, Ello is priced at $14.99 per month. Families receiving government assistance can access it for just $2.99 per month, and Ello partners with low-income schools to provide the subscription at no additional cost.