Baidu's AI Livestream Event Draws 13 Million Viewers, Generates $7.65 Million in Sales

Baidu recently hosted a livestream event featuring AI-generated digital avatars, including a perfect digital double of China’s top livestreamer, Luo Yonghao. The event attracted over 13 million viewers and generated sales exceeding RMB 55 million (USD 7.65 million) in gross merchandise value (GMV). Luo Yonghao and his partner Xiao Mu used digital versions of themselves to engage with viewers live for over six hours on Baidu’s e-commerce livestreaming platform “Youxuan”.

This event marked a significant milestone for AI in the livestreaming industry. Luo Yonghao, one of the first and most prominent livestreamers in China, had previously hosted a livestream on Youxuan that lasted just over four hours and generated fewer orders for consumer electronics, food, and other key products. The success of the AI-driven livestream highlights the potential of digital avatars in enhancing viewer engagement and driving sales.

Luo Yonghao, who began livestreaming in April 2020 on ByteDance’s short video app Douyin, initially used livestreaming to repay debts accumulated by his struggling smartphone company, Smartisan. His “Be Friends” Douyin livestream account now boasts nearly 24.7 million fans. The AI avatars used in the recent event were created with the help of Baidu’s generative AI model, trained on Luo’s jokes and style from five years of videos. This technology allows for significant cost savings as companies do not need to mobilize large production teams or rent studios for live broadcasts. Additionally, digital avatars can stream around the clock without taking breaks, unlike their human counterparts.

Wu Jialu, head of research at Luo’s company, Be Friends Holding, noted that while the company had been skeptical about digital people livestreaming, Baidu now provides the best digital human product on the market. He highlighted that this event marks a significant moment for China’s livestreaming and digital human industry, indicating a growing acceptance and integration of AI in e-commerce.

Livestream shopping gained traction in China after the pandemic forced businesses to adopt new sales approaches. With economic growth slowing, many people are turning to livestreaming platforms for commission work and virtual gifts. Livestreaming has led to increased sales on Douyin, making it the second-largest e-commerce platform in China, surpassing traditional e-commerce companies. Other tech giants, including Tencent, have also developed tools to build digital people for various applications, including news anchoring and livestreaming.

Despite the success of virtual humans in livestreaming, they face challenges such as compliance with platform requirements and rules about product advertising. Wu Jialu emphasized that the significant challenge for virtual humans in livestreaming is not technology but compliance. Major livestreaming platforms may have different rules about permitting virtual people to host sessions, and some platforms, like Douyin, have introduced limitations on the use of the technology. Wu speculated that Luo’s next appearance as a virtual human is not yet set but will likely be soon, and in the future, digital humans could use livestreaming to reach users outside China in multiple languages.