AI-generated avatars are increasingly popular in China’s livestreaming industry.

A recent session on Baidu’s ecommerce platform, Youxuan, featured digital versions of livestreamer Luo Yonghao and his co-host Xiao Mu.

The session generated sales of 55 million yuan (US$7.6 million) in over six hours, surpassing Luo’s previous performance on the platform.

Luo, who began livestreaming in 2020, said that this was his first experience using virtual human technology for sales.

Baidu’s generative AI created the avatars by analyzing five years of video to replicate the hosts’ personalities and style.

Despite benefits like lower costs and nonstop streaming, challenges include compliance with ad regulations and platform rules.

Luo’s team plans more AI-hosted streams and sees potential in multilingual versions to reach global audiences.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ AI livestreaming breakthrough reflects China’s unique e-commerce evolution

AI avatars outperforming humans isn’t occurring in isolation but within China’s mature livestreaming ecosystem that has been evolving for nearly a decade.

China pioneered the integration of entertainment and commerce through livestreaming, with Taobao generating over 100 billion RMB ($15.1 billion) in gross merchandise volume through livestreaming back in 2018, marking a 400% year-on-year increase 1.

This foundation allowed China to establish livestreaming as a primary shopping channel rather than just entertainment, with approximately 18% of total retail sales occurring online compared to 10-12% in the U.S. even in 2016 2.

The recent AI breakthrough builds on a market that already had 456 million livestream viewers and thousands of human hosts creating 150,000 hours of content daily 1.

Unlike Western platforms where livestreaming focuses primarily on gaming and entertainment, Chinese consumers have long used livestreaming specifically for product discovery and purchasing, creating a ready market for AI-driven innovation 1.

2️⃣ AI livestreamers represent a significant economic inflection point