AI Avatars in China Have Demonstrated Incredible Potential as Influencers

These cutting-edge avatars, powered by artificial intelligence, have proven capable of outpacing human sellers. This is a remarkable feat made possible through a partnership between Chinese tech giant Baidu and renowned livestreamer Luo Yonghao, achieving over $7 million in sales in just seven hours.

During an impressive six-hour livestream on Baidu’s e-commerce platform, Youxuan, Luo and his co-host Xiao Mu engaged with viewers using their digital counterparts, resulting in a staggering 55 million yuan (around $7.65 million) in sales. 

This performance far surpassed Luo’s previous attempt on Youxuan, which yielded disappointing results after four hours of streaming. Luo, a pioneer in the livestreaming space, expressed his astonishment at this new technology: “The digital human effect has truly amazed me… I’m a bit dazed,” he shared with his 1.7 million followers on Weibo, as reported by CNBC.

Since starting his livestreaming journey in April 2020 on ByteDance’s Douyin to pay off debts from his now-defunct smartphone company Smartisan, Luo has amassed an incredible following of nearly 24.7 million on his “Be Friends” Douyin account.

The impressive avatars utilized by Luo and Xiao were created using Baidu’s advanced generative AI model, which learned from five years’ worth of video content, allowing the avatars to perfectly replicate their humor and style. Wu Jialu, head of research at Luo’s other company, Be Friends Holding, remarked on the significance of this innovation in a CNBC interview.

“This moment marks a turning point for China’s entire livestreaming and digital human industry,” Wu stated, noting the profound implications of this technology. With DeepSeek, China’s equivalent to OpenAI, making headlines by competing with ChatGPT at significantly lower costs, the future is undeniably bright for digital influencers.

The benefits of AI avatars extend beyond sales; they drastically cut costs for companies, eliminating the need for large production teams and studios. These virtual hosts can stream continuously, without breaks, ensuring an uninterrupted shopping experience for consumers.

Initially, there was skepticism about digital avatars in the livestreaming space, but Wu believes that Baidu’s current offerings are unparalleled compared to the early editions of livestreaming e-commerce. 

As livestream shopping skyrocketed in popularity during the pandemic, many businesses discovered new avenues for sales, leading to a surge in income from commissions and virtual gifts against a backdrop of slowed economic growth. 

In fact, livestreaming sales on Douyin outpaced those of traditional powerhouse JD.com last year, propelling Douyin to become China’s second-largest e-commerce platform and challenging the market dominance of Alibaba.

In addition, other Chinese companies, including the tech titan Tencent, are innovating by creating digital personas for roles like news anchors. Recently, several businesses experimented with virtual human livestreamers during the Singles Day shopping event, paving the way for a dynamic future in e-commerce.

However, it’s important to note that analysts have indicated that products sold through livestreaming often experience high return rates, primarily due to impulsive buying behavior. The pressing challenge now lies not within advancements in technology but rather in ensuring compliance with platform regulations. 

Digital avatars must be meticulously trained to navigate product advertising regulations, as different livestreaming platforms have varying guidelines concerning virtual hosts. For instance, Douyin has instituted restrictions on using this technology unless the virtual hosts actively engage with viewers. 

While Luo’s next virtual human appearance hasn’t been confirmed yet, Wu is optimistic it will happen shortly. Looking ahead, he envisions a future where digital humans can effortlessly livestream in multiple languages, reaching audiences far beyond China’s borders.

This evolution in livestreaming is not just a trend; it marks a revolutionary shift in how we engage with consumers and redefine the retail landscape. The potential for AI avatars to reshape the future of e-commerce is boundless, and now is the time to embrace this groundbreaking technology.