AI Avatars Outshine Human Sales Staff in China's Livestream Ecommerce Industry

AI-powered avatars are increasingly being used for product sales in China, surpassing human sales staff in performance. Brother's AI avatar sold $2,500 in printer sales within two hours, a 30% increase over traditional livestream sales. The avatars are crafted by Shanghai's PLTFRM and promote various products on ecommerce platforms like Taobao and Pinduoduo. AI avatars can operate unceasingly, unlike human salespeople who suffer from fatigue.

In the rapidly evolving landscape of Chinese e-commerce, AI-powered avatars are emerging as a formidable force in product sales. These virtual salespeople, created by Shanghai-based marketing firm PLTFRM, are outperforming their human counterparts, showcasing the potential of artificial intelligence in driving sales and efficiency.

Brother's AI avatar, for instance, generated $2,500 in printer sales within two hours, a 30% increase over traditional livestream sales [1]. This success is not isolated; PLTFRM has deployed around 30 similar avatars across Chinese e-commerce sites like Alibaba’s Taobao and Pinduoduo, selling products ranging from printers to wet wipes. The avatars, powered by Baidu video models and DeepSeek language models, operate unceasingly, unlike human salespeople who suffer from fatigue.

The technology behind these avatars has significantly advanced, making them more realistic and capable of generating customized responses in real-time during livestreams. This capability has allowed companies to extend their livestream hours, making it a powerful marketing channel in China. In 2024, over one-third of all e-commerce sales in China were estimated to have occurred on livestreams, with one in two people shopping while watching a broadcast [2].

The rise of AI avatars raises questions about their potential impact on employment in the e-commerce sector. While they are currently not allowed on Douyin, China's version of TikTok, which has been more reluctant to adopt AI-generated salespeople, their success on other platforms is undeniable. American and European companies have expressed interest in deploying similar avatars on US social media platforms, indicating a global trend in AI adoption for sales.

PLTFRM's avatars are modeled on actual human sales representatives, sometimes operating in hybrid streams where the real person works for a few hours before switching with the AI. This hybrid approach allows companies to leverage the strengths of both human and AI salespeople, ensuring a balance between personal interaction and continuous sales performance.

As the technology continues to improve, it is likely that AI avatars will play an increasingly significant role in the e-commerce industry, potentially reducing the need for influencers and direct marketing by retail stores. However, for now, PLTFRM believes that the technology is complementary to influencers who drive sales on social media.

References:

[1] https://slashdot.org/story/25/08/20/1844240/chinese-virtual-human-salespeople-are-outperforming-their-real-human-counterparts
[2] https://www.wired.com/story/artificial-intelligence-tiktok-shop-ecommerce-china/