Previous research showed that the parents acknowledged the technology's benefits for their young children's learning, however, they are still worried about the extended screen time, lack of physical activity and lack of social interactions. To address these concerns, we developed Kid Space to enable pedagogically appropriate technology use for children in early childhood education by combining various sensing technologies with a multi-modal conversational artificial intelligence system that can interact with children, understand individual progress and provide personalised learning experiences. To understand the impact of Kid Space on the parents' initial concerns about technology use by their young children, we conducted a multi-method user study: (1) a quasi-experimental design and (2) formative research method using an exploratory case study with a set of children and their parents experiencing Kid Space in their homes. The results show that after experiencing Kid Space with their children, the parents felt significantly less concerned about screen time, social interactions and physical activity and reported positive perceptions towards pedagogical value of Kid Space. Detailed analysis on the multi-modal data quantitatively and qualitatively validated why Kid Space alleviated these concerns. Future research is needed to validate long-term educational value of Kid Space and generate insights for improvement for next iterations.