AI Avatars Outperform Human Streamers in China: A New Era for Livestreaming
In a groundbreaking experiment, Chinese influencer Luo Yonghao and his co-host Xiao Mu demonstrated the power of artificially generated avatars on June 15, 2025, during a livestream event on Baidu’s e-commerce platform, Youxuan. Using advanced digital representations created by Baidu’s generative AI model, they captivated viewers for over six hours, generating a staggering 55 million yuan (roughly $7.65 million) in sales. This event marks a significant shift in the livestreaming landscape, suggesting that AI avatars may be more effective at selling products than their human counterparts.
The Rise of Digital Avatars in Streaming
Luo, a pioneer in the livestreaming realm, originally started broadcasting on ByteDance’s Douyin to pay off substantial debts from his smartphone company, Smartisan. Since then, his Douyin account, "Be Friends," has garnered nearly 24.7 million followers. During this recent endeavor, he expressed a mix of awe and disbelief about the commercial power of these digital representations, stating, "The digital human effect has scared me … I’m a bit dazed."
Baidu’s generative AI technology played a crucial role in this transformation. By analyzing five years’ worth of video footage, the AI was trained to replicate Luo and Xiao’s humor and conversation style—creating a uniquely engaging experience for viewers. Wu Jialu, the head of research at Luo’s Be Friends Holding, noted that this represents a pivotal moment for China’s evolving livestreaming and digital human industry, likening it to a significant leap akin to the advancements seen with ChatGPT.
Cost Efficiency and Non-Stop Streaming
The implications of this technology extend beyond mere entertainment. AI avatars drastically reduce production costs, allowing companies to bypass the need for extensive teams and studios. These digital personas can engage with audiences continuously, streamlining the sales process like never before. This efficiency is particularly valuable for companies facing economic slowdowns and looking for new revenue streams through innovative channels.
As Chinese consumers increasingly turn to livestream shopping, the momentum continues to build. The significant sales generated in 2023 positioned Douyin above traditional e-commerce player JD.com, indicating that the integration of livestreaming into shopping is becoming not just popular but essential.
Challenges Ahead for Virtual Human Interaction
Despite the excitement surrounding AI avatars, the sector isn’t without its hurdles. Experts warn that livestreamed products often accrue high return rates, primarily due to impulsive buying behaviors stimulated by the format. Moreover, as the technology matures, compliance with advertising regulations and platform requirements emerges as a central challenge. Each streaming service, including Douyin and Alibaba’s Taobao, has its own policies regarding digital interaction and avatar usage, making it crucial for these avatars to align with varying guidelines.
Looking forward, Luo’s team has not yet announced when the next virtual human appearance will occur, but expectations are high. Future advancements may soon allow these digital avatars to reach international audiences by livestreaming in multiple languages, further expanding the scope of their impact.
As AI continues to evolve, the rise of digital avatars in livestreaming not only illustrates a technological leap but also sets the stage for a profound change in how businesses engage with consumers in an increasingly digital world.
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Bio: Priya specializes in making complex financial and tech topics easy to digest, with experience in fintech and consumer reviews.