Key Takeaways:
- Over 993,000 digital avatar companies have popped up in China.
- Livestream shopping in China hit $691 billion in 2023, growing 35% from 2022.
- AI avatars made $46.9 billion in 2023 and could reach $90.1 billion by 2025.
- Some live streamers use AI clones to run multiple streams at once, boosting sales.
- Brands and influencers save money by using avatars instead of real people.
- Some viewers are confused and upset by AI hosts, leading to new rules.
What’s Happening with AI Avatars in China?
In China, livestream shopping is a big deal. Last year, it grew to $691 billion, which is a 35% jump from 2022. Now, AI-generated digital avatars are becoming super popular in this space. These avatars look and act like real people, and they’re changing how brands sell stuff online.
Over 993,000 companies in China are now working with digital avatars, with more than 400,000 starting just this year. It’s clear that AI is the future of shopping in China.
How Do These Avatars Work?
AI avatars use advanced tech like 3D rendering, motion capture, and machine learning to look and act human. For example, a live streamer named Xue’er partnered with an AI company called Silicon Intelligence. She recorded just one hour of video from different angles and created digital clones of herself. These clones can host 5-10 live streams at the same time!
In 18 months, her AI clones made over $50 million in sales. That’s amazing! The process is getting cheaper too. Basic avatar tech can cost a few hundred dollars, while the best tech might cost thousands.
Why Are Brands and Influencers Using AI Avatars?
There are big benefits to using AI avatars. For one, they save money. Brands and influencers don’t need to pay for studio space, sound engineers, or makeup artists. The avatars can also stream 24/7 without getting tired, which means more sales opportunities.
Liu Run, a business influencer with over a million followers, uses his AI clone to talk about management and entrepreneurship. He says most people can’t tell the difference between him and his avatar.
Big companies like Baidu, Tencent, and Alibaba are also jumping into AI cloning. The market for digital humans in China is expected to reach $1.5 billion by 2026.
What Do Consumers Think About AI Avatars?
Not everyone is happy with AI hosts. When actor Calvin Chen used an AI clone for a 15-hour livestream selling chicken feet, he lost 7,000 followers. Even though he labeled it as AI, people were confused and upset.
Now, platforms like Douyin are making rules. They’ve banned live streams that only use AI and require creators to label AI-generated content clearly. Plus, creators must use their real identities when registering.
Legal Issues with AI Avatars
Using AI avatars can also lead to legal problems. If an avatar makes false claims or doesn’t have permission to use someone’s likeness, the company could get in trouble.
Lawyer Ying Jie says operators of digital avatars are still responsible for what happens during a stream. If they use someone’s image without consent, there could be legal consequences.
The Future of AI in Livestream Shopping
AI avatars are here to stay in China’s livestream shopping world. They offer big advantages for brands and influencers, but there are challenges too. As the tech keeps improving, we’ll likely see even more AI hosts in the future.
For now, it’s a mix of excitement and caution. While some viewers love the new tech, others are still getting used to it. Platforms are working to balance innovation with rules to protect everyone involved.
One thing’s for sure: AI avatars are changing how we shop online, and China is leading the way.
