The Impact of AI-Generated Avatars on the Creator Economy

Published:
6/1/2024

Imagine scrolling through TikTok and coming across an ad. Chances are, the person promoting the product is real. But that might soon change. Social media is evolving, and brands are increasingly using advanced technologies to boost their marketing strategies. TikTok recently unveiled a set of AI-driven tools that enable brands to create ads featuring avatars that look like real people. This innovation promises to transform digital advertising, presenting both exciting opportunities and notable challenges.

AI Tools for Customisable Avatars

TikTok’s new AI tools allow brands to choose between two types of avatars: stock avatars, created from video footage of real actors, and customisable avatars, designed to resemble specific creators. Brands can either select an existing avatar, where actors have permitted the use of their digital likeness, or opt for a custom avatar. These custom avatars are influencers who have agreed to share their digital likeness for a fee. These avatars can speak any language, adopt any accent, and deliver any message about the brand's products and services.

Influencers who want to participate must sign up for the program, set their rates, and approve the brands and messages associated with their digital image. TikTok ensures there are safeguards in place to manage this process. Although there are some concerns, TikTok has implemented several moderation measures from creation to upload. Currently, this program is in beta testing, involving a controlled group of participants. TikTok has been proactive in creating policies around AI-generated content, being the first to introduce the AI-generated content label and implement the Content Credentials feature. They have also banned AI-generated content for minors, ensuring thorough oversight.

New Revenue Streams for Creators

For creators, these AI tools offer a new way to monetize their influence. For instance, an Italian influencer can now translate their content and engage with a global audience. This development sparks a broader discussion about authenticity and trust, which we'll explore later.

TikTok is not alone in integrating AI into advertising. Other platforms like Instagram and Meta are also incorporating AI features. Meta has introduced generative AI tools that create backgrounds, expand images, and generate multiple versions of ad text, simplifying the process for advertisers to produce diverse and engaging content. This shift towards AI-generated content reflects a broader trend in the advertising industry, emphasizing efficiency and personalization.

Success Stories and Ethical Concerns

A standout example of AI in digital advertising is the virtual influencer Lil Miquela, created by Brud, a Los Angeles-based technology and entertainment company. Since her debut on social media, Lil Miquela has attracted millions of followers by blending real-world and virtual experiences. As a digital avatar, she has endorsed major brands, participated in social campaigns, and even released music, showcasing the commercial potential of virtual influencers. Her success highlights the potential for AI-generated avatars to engage audiences in innovative ways and drive brand partnerships.

Another intriguing case is Caryn Marjorie (@cutiecaryn), who launched CarynAI on Telegram. By uploading over 2000 hours of her content, voice, and personality, she became the first creator to transform into an AI. This innovation allowed millions of people to interact with her simultaneously. Despite its financial success, generating $100,000 since its launch, CarynAI has raised significant ethical and social concerns. Users, predominantly men, have often interacted with the bot in sexually aggressive ways, leading to disturbing experiences as reported by Marjorie. This example underscores the complex issues arising from AI-generated personalities and their interactions with real humans.

Google is reportedly working on a new AI project that will let users converse with chatbots modeled after celebrities, YouTube influencers, or even fictional characters. This project aims to fine-tune its Gemini language models to mimic specific people’s response styles, potentially partnering with YouTube influencers to create brand-specific AI personas. This move is seen as a direct challenge to Meta’s Celebrity AI chatbots and Character.ai, a service offering diverse personas from TV characters to real-life politicians.

AI’s Impact on Advertising

In 2023, several major brands successfully leveraged AI in their campaigns. Virgin Voyages used AI to create personalized cruise invitations featuring a digital version of Jennifer Lopez. Heinz utilized OpenAI's DALL-E 2 to generate creative, ketchup-inspired images. Coca-Cola's "Masterpiece" campaign combined AI with human creativity to produce visually stunning ads. Cadbury used AI to create personalized content for the Indian market. These examples highlight AI’s potential to create engaging and personalized advertising content that resonates with diverse audiences.

However, the introduction of AI-generated avatars has also raised ethical and practical concerns. Some worry that these avatars might lack the natural fluidity and authenticity of human influencers. Marketing experts like Mara Einstein point out that AI builds on existing data and might struggle to introduce genuinely new and creative ideas. Content creators like Arielle Fodor express concerns about the potential impact on jobs, especially in light of recent actors' strikes over the use of AI in the entertainment industry.

Despite these concerns, the potential benefits of AI in advertising are significant. As technology advances, the realism and functionality of AI-generated avatars are likely to improve, making them more effective and harder to distinguish from real humans. This could significantly reduce production costs and time, allowing brands to produce high-quality content more rapidly.

The Future of AI in Marketing

Looking ahead, the health and wellness industry is also seeing AI-driven innovations. Platforms like FitXR and Headspace are using AI to create more personalized and engaging user experiences. FitXR offers immersive VR workout sessions, while Headspace tailors mindfulness and meditation sessions to individual needs. These advancements underscore the growing trend of personalized, tech-driven wellness solutions that resonate with consumers on a deeper level.

In conclusion, the advent of AI-generated avatars on TikTok and other platforms marks a significant step forward in digital marketing. While there are legitimate concerns about authenticity and ethical implications, the potential benefits in terms of efficiency, scalability, and creativity are considerable. As these technologies continue to evolve, they will likely become an integral part of the digital marketing toolkit, helping brands connect with audiences in innovative and meaningful ways. The future of influencer marketing is undoubtedly exciting, with AI playing a pivotal role in shaping new paradigms of engagement and interaction. Balancing technological innovation with the irreplaceable human touch will be key to achieving success in this new landscape.

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