Artificial intelligence in China comes to the fore: AI avatars earned more than $7 million in one broadcast

Authors created with the help of artificial intelligence technologies demonstrate high efficiency in the field of online trading. According to Baidu, a joint project between the company and well-known Chinese streamer Luo Yonghao managed to sell goods worth 55 million yuan ($7.65 million) in one session. To conduct the broadcast, Luo and his co-host Xiao Mu used digital avatars created on the basis of Baidu's generative AI model. The session lasted more than six hours and was held on the Youxuan direct sales platform.

Earlier in May, Luo held his first broadcast on Youxuan without using virtual technology. It lasted just over four hours and resulted in fewer orders for electronics, food and other goods. According to Lo, the effect of using digital avatars exceeded his expectations.

Avatars of presenters were developed using artificial intelligence based on video materials for five years, which allowed the model to reproduce the manner of communication and jokes in the usual style for the audience. According to Wu Jialu, head of research at Be Friends Holding, the results represent an important milestone for the digital avatar and streaming industry in China. He noted that modern technologies allow companies to reduce the cost of organizing broadcasts, as there is no need for a large staff and equipped studios. Digital avatars can work without interruptions and broadcast at any time.

The popularity of online sales via live streams in China has grown since the pandemic. According to Worldpanel and Bain & So, in 2023, the volume of sales through streams on the Douyin platform exceeded the figures JD.com by making it the second largest e-commerce platform in the country and reducing the share of the market leader — Alibaba.

At the same time, analysts note that a significant part of purchases during streams are made impulsively, which leads to a high level of returns. Issues of compliance with regulatory norms and platform requirements are becoming key for the development of the format with the participation of virtual people. Wu Jialu said that digital avatars must be trained to meet advertising standards, and the rules for using virtual hosts on platforms including Douyin are becoming stricter.

According to representatives of Be Friends Holding, the next broadcast using AI avatars may take place in the near future. In the future, the company plans to develop multilingual broadcasts to reach international markets.