AI Is Coming for the Influencers

In the fast-paced world of advertising, AI is making significant waves, fundamentally changing the landscape of creative industries. Amazon, Google, and Meta are spearheading this revolution, encouraging advertisers to harness the power of AI tools to generate ad copy and imagery. One striking example is the emergence of virtual influencers – synthetic characters crafted using artificial intelligence. These virtual influencers, such as Aitana and Kuki, are gradually penetrating the $21 billion content creator economy, causing concern among human influencers who fear their income is being threatened by digital rivals. The Barcelona-based agency, The Clueless, inadvertently created a digital sensation, Aitana, in response to the exorbitant rates charged by human influencers. This disruptive innovation challenges the established influencer market, while simultaneously providing advertisers with an alternative promotional avenue.

In a purely descriptive, nonjudgmental sense, AI produces inauthentic content, aligning with the advertising industry’s foundations built on inauthenticity. The intersection of generative AI and advertising complicates the fundamental question of whether this content effectively sells products. Meta’s case study on a virtual influencer, Kuki, demonstrated an 11x increase in ad recall and a 91% decrease in cost per person recalling seeing ads. This astounding success highlights the potential of virtual influencers as an advertising tool, with the ability to sway consumer perceptions and significantly reduce costs. However, it is essential to recognize that these virtual influencers primarily operate as spokesmodels and mascots in advertisements, rather than independently promoting products to a dedicated audience.

The rise of virtual influencers represents a new paradigm in advertising, where their presence in ad campaigns serves as a novelty factor, capable of altering campaign metrics. Brands are leveraging AI-generated product photos and synthetic spokespersons to achieve better advertising results, which could potentially overshadow human influencers in specific niche markets. While this poses a threat to the revenue streams of human influencers in certain contexts, it also signifies a broader trend of AI encroaching on various creative industries and automating their fundamental economic functions.