How AI Avatars are Transforming China's Livestream Sales
AI has evolved into a crucial tool in the modern workspace, contributing to roles such as data analysis, information summarization, and email management.
AI-powered platforms have gained such a foothold that many employees are now concerned about job security. Certain roles, however, still seemed relatively safe.
Sales professionals traditionally relied on human qualities, like charisma and communication, to connect with clients. Yet, this protective moat might be narrowing. As observed by WIRED, businesses in China are increasingly employing AI-driven avatars to conduct sales over livestreams, some even besting their human counterparts.
Brother, a Japanese electronics firm, has begun utilizing virtual sales agents within China's rapidly growing livestream sales environment.
The performance was notable -- within just two hours, Brother's avatar sold US$2,500 worth of printers, surpassing typical livestream sales by 30%.
This AI solution was developed by PLTFRM, based in Shanghai, which has now integrated 30 AI avatars into major sales channels, including Taobao and Pinduoduo, to market an array of products like office supplies and consumer goods.
"Every morning, we check the data to see how much our AI host sold while we were asleep," Brother stated in a corporate communication.
"It's now part of our daily routine."
Round-the-clock Selling
WIRED reports that PLTFRM's digital sales teams are engineered using an amalgamation of Baidu's AI analytics and DeepSeek's language models. This fusion enables avatars to craft scripts on the go and interact with customers during livestreams.
Unlike earlier models built on static responses, these advanced AI avatars can handle real-time viewer interactions.
Alexandre Ouairy, the Co-Founder of PLTFRM, revealed that in industries where virtual salespeople are utilized, they're consistently outperforming human staff.
A key advantage for AI is its non-stop operational ability. Virtual agents can operate continuously without the limitations of human needs like food or sleep.
This capability is especially beneficial within China's burgeoning livestream ecommerce sector.
Human Flaws
The constraints of human-run livestream sales present challenges that AI solutions efficiently tackle.
"A human can only run a livestream for three or four hours. Beyond that, they become exhausted," Alexandre notes.
Performance metrics show that human sales efficacy declines as presenters tire over long sessions.
"Sales are higher initially with a real person, but they drop as fatigue sets in," he continues. "The virtual agent maintains consistency in both attitude and performance."
Is This the Future of Ecommerce?
The Chinese livestream commerce market has reached substantial dimensions, with over a third of ecommerce sales now happening during live broadcasts in 2024.
Government studies indicate that half of Chinese consumers have purchased goods while observing livestreams.
Baidu capitalised on this trend, organizing a well-publicised demo with an AI depiction of influencer Luo Yonghao, which drew 13 million viewers and achieved US$7.7m in merchandise sales.
The Fate of Human Sales Personnel
The transition towards AI-based sales signifies a core transformation in China's ecommerce marketing tactics.
Organisations are increasingly migrating from influencer collaborations to direct AI sales channels, possibly decreasing reliance on human content creators.
Alexandre sees the technology as an addition to existing influencer marketing strategies, stating that AI avatars serve "as a sales representative, just like a salesperson in a physical store."
However, the economic benefits associated with 24/7 AI sales suggest that more extensive human role replacement may be on the horizon.
