AI-generated virtual influencers in China are demonstrating remarkable success in sales and audience engagement, even surpassing human counterparts in certain aspects. A recent instance highlighted a duo of AI influencers who, in a mere seven hours, generated over $7 million in revenue, underscoring their potent influence in the digital marketplace.

The Rise of Virtual Influencers in China

China has been at the forefront of developing and integrating virtual influencers into its marketing strategies for over a decade. Pioneers like the virtual singer Luo Tianyi, created in 2012, paved the way for a new generation of digital personalities. These AI-powered avatars, also known as virtual Key Opinion Leaders (KOLs) or e-celebrities, are increasingly populating major social media and e-commerce platforms, fundamentally reshaping influencer marketing and celebrity endorsements. The virtual influencer market in China has experienced explosive growth, with market size estimations reaching 36 billion yuan in 2023, and projections indicating a surge to 300 billion yuan by 2030. This expansion is fueled by their ability to achieve fan engagement rates three times higher than human influencers, with over 60% of Chinese netizens actively following these digital entities.

AI’s Impact on Live Commerce

Live commerce has become a massive industry in China, valued at over $740 billion USD with a user base exceeding 727 million. AI-generated virtual anchors and influencers are rapidly gaining traction in this space, offering brands a cost-effective and tireless alternative to human hosts. These AI presenters can operate 24/7 without breaks, ensuring continuous brand engagement and potentially boosting sales. Brands like Estee Lauder and L’Oréal have already engaged virtual anchors for their live e-commerce events. The efficiency and cost-effectiveness of AI hosts are significant advantages, with digital avatars being purchasable for a few hundred U.S. dollars, saving businesses costs associated with hiring human hosts and support staff. It’s estimated that AI influencers can boost average Gross Merchandise Value (GMV) by over 30% by maximizing user growth during off-peak periods and maintaining a constant presence.

Key Players and Success Stories

Several virtual influencers have achieved significant recognition and commercial success in China. Ayayi, a hyper-realistic avatar, has collaborated with luxury brands such as Bulgari and Tesla, and served as an ambassador for Estée Lauder. Liu Yexi, another prominent beauty and cosmetics influencer, often features in short animated films where she uses her “superpowers” to spread positivity. The virtual singer Luo Tianyi has not only achieved massive popularity on social media but has also co-hosted shoppable livestreams on platforms like Taobao, even collaborating with human KOLs like Li Jiaqi, the “Lipstick King.”

The success of AI influencers is not limited to individual personalities; AI-generated products are also driving sales. For example, an AI-designed green dress went viral on social media, leading to significant sales for stores that quickly produced it. This demonstrates the power of AI not only in creating personas but also in driving product demand and sales.

Advantages and Challenges

The advantages of using AI influencers are numerous:

• Cost-Effectiveness: AI influencers are significantly cheaper to produce and maintain compared to human influencers.
• 24/7 Availability: They can broadcast and engage with audiences around the clock, offering constant brand presence.
• Controlled Messaging: Brands have greater control over the narrative and image presented by AI influencers, mitigating the risk of scandals or off-brand behavior.
• High Engagement: AI influencers often achieve higher engagement rates with their audiences.

However, challenges also exist:

• Authenticity Concerns: While AI technology is advancing rapidly, some consumers may still question the authenticity and emotional connection with AI personalities.
• Regulatory Landscape: China has implemented strict guidelines for advertising and influencer marketing, requiring transparency and compliance with content regulations.
• Technical Glitches: Early AI hosts were sometimes prone to glitches and rigid scripting, though advancements are continuously improving their interaction capabilities.

Despite these challenges, the trajectory of AI and virtual influencers in China indicates a significant and growing impact on the marketing and e-commerce landscape, demonstrating their capability to drive substantial revenue and captivate consumer attention.