Like many parents of young children who seem to think 5 a.m. is a perfectly reasonable wake-up time, Neil Vidyarthi and Lauren Dugan remember their seven-year-old son Ashwin crawling into their bed at the crack of dawn every morning. Instead of fighting a losing battle to get him back to sleep, they decided to make the most of those groggy, quiet mornings by making up interactive story games. 

“We would do anything to get him to go back to sleep for a little bit,” said Lauren. “We would tell interactive stories with him, just talking it out, using our imagination and his imagination to build story worlds.”

One of those early morning stories started with a squirrel. Ashwin, never one to shy away from a big idea, decided that the squirrel should fly to the moon. The story became a wild, unpredictable journey, with Ashwin in control of every twist and turn – deciding where the squirrel would go next, who it would meet and what wild adventure it would embark on. 

Before generative AI became a household buzzword, Neil and Lauren were already witnessing the magic of letting a child guide the narrative, much like how modern AI allows users to steer outcomes based on their input. They could see how powerful this interactive storytelling could be for sparking creativity and bringing stories to life in unexpected ways.

“I remember the next day [Ashwin] was still talking about [the story],” said Neil. “It was like an imaginative world in his head, and I realized that boundless imagination was such a huge source of joy.”

That moment sparked something even bigger. With Neil’s background in gaming and Lauren’s passion for storytelling, they set out to create something that would let kids like Ashwin explore interactive stories powered by AI. What began as a family experiment has grown into Little Magic Stories, an app created by their company, Feel Good Games. The team has expanded to include two additional co-founders, along with five other team members, bringing the total to eight.

Designed for kids aged five to 10, Little Magic Stories offers an alternative to typical passive screen time. Instead of zoning out in front of the screen, kids can actively participate – choosing their own paths, making decisions and shaping their own stories, all while spending quality time with their parents and improving their literacy. Neil and Lauren want to turn screen time from a source of concern into a tool for creativity, learning and connection.

Screen time in the age of AI

Nearly all Canadian children are exposed to screens by the age of two, and the average three-year-old logs nearly four hours of TV a day. The COVID-19 pandemic only deepened concerns, with screen time rising across all age groups. 

“It’s a struggle. Parents don’t know what to give [their kids] that’s not addictive, or that’s good for them,” said Neil. “There has to be a healthy way through. I think we need ways to make screen time both entertaining and healthy.” 

The Canadian Paediatric Society (CPS) recommends that children under two have no screen time at all and that children aged two to five should limit routine screen time to just one hour a day. Yet, studies show that these recommendations are often ignored. The typical Canadian two-year-old already spends over two hours per day in front of screens, and for three-year-olds, that number jumps to nearly four hours a day. For many parents, finding a balance between entertainment and educational content can be challenging.

In an age where children are increasingly exposed to screens, Feel Good Games is turning that experience into something positive. Instead of shaming or limiting screen use, Neil and Lauren want to show parents that technology doesn’t have to be the enemy.

“AI is going to change the way we interact with technology,” said Neil. “We hope to get this right as an early instructive tool for parents to introduce their children to AI.”

Creating stories that empower kids

For Lauren, a longtime storyteller and author, the goal is to empower children through choice and creativity.

“Children thrive when they are led by their own choices within a very well-defined box that’s appropriate to where they are developmentally,” she said. “So I saw this really cool opportunity to create these really wide story boxes that kids could play with. That was a big part of  my inspiration for this new style of storytelling.”

With Little Magic Stories, children embark on bite-sized adventures, where they can make decisions and see their actions unfold in real time. Whether they turn the world into chocolate, barrel into the center of the Earth, or travel to a magical dimension, each adventure is designed to engage their imagination and help improve their reading skills. 

“You see the sense of ownership and this sense that they’re in control, and I think that’s really important for kids,” said Lauren. “Often, they’re told what to do. They’re told when to go to school, when to put their shoes on, and what they eat for lunch. So giving them these choices is empowering for them.”

Neil and Lauren say Little Magic Stories can adapt to each child’s interests and reading level. Whether a child is a fan of Paw Patrol or enchanted by Peter Pan, the game adjusts the story to suit their preferences, making it a personalized experience. 

“We want every child to feel like the hero of their own story,” said Neil.

Building a healthy relationship with technology

One of the challenges for parents is knowing when and how to introduce their children to technology. Neil and Lauren want to provide a safe space for families to explore AI together, offering parents a chance to guide their kids through their first steps with this new technology. 

"It’s not about giving them a device and walking away,” said Neil. “It’s about engaging with them, helping them understand what they’re interacting with."

Neil and Lauren are focused on refining their product and ensuring it meets the needs of families. They recently released a closed alpha of Little Magic Stories, with plans to grow their user base slowly, gathering feedback and making improvements. 

“Then we’re going to move on to a fundraise, once we’ve made this app as valuable as possible for our first superfans,” said Neil. “We want to make sure we get that product market fit correct at this point.”

Lauren says the app has already had a positive effect on kids in early tests. Their broader vision, however, goes beyond just kids’ gaming. 

“In the future, we have ambitions to help educators in school environments, to help employees with their jobs,” said Neil. “Small, interactive stories are powerful ways of teaching lessons and connecting.”

For now, Little Magic Stories is a way for families to use AI to spark creativity, strengthen reading skills and empower kids to make choices in a world that often feels dominated by passive media.

“Giving them these choices is empowering for them, and as they continue to engage with these stories, it’s a great feeling to see them reading and hooked on reading in a way that’s healthy,” said Lauren. “That takeaway for me has been the most rewarding part so far of creating this app.”

Sign up for early access to Little Magic Stories by joining the waiting list at www.littlemagicstories.com — your invite is on the way! For any inquiries (or to get a little extra push on the waiting list), feel free to reach out to Neil on LinkedIn.