AI-generated avatars, or “digital humans” are becoming increasingly popular in China. Beijing officials have estimated that the digital human sector will surpass by $50 billion yuan (~$7B USD) by 2025 and $38.5B by 2030, according to a report released by QbitAI. There are over 280,000 Chinese companies actively working in the digital human space. These digital humans exist solely on the internet and are typically divided into two categories: character-based and function-based.

Character-based digital humans are often created in the likeness of celebrities or IP from pop culture characters.

Function-based digital humans, are often used for their reduced cost and efficiency compared to using real people, and can take the form of musicians, fashion models, news anchors, influencers and even financial advisors.

These function-based digital humans are putting some people out of work, especially in the live commerce sector. Live commerce, similar to QVC in America, is incredibly popular in China. There are over 1 million people working as live commerce hosts in China, having brought in over $140B in goods sold last year. Chinese tech giants like Tencent and Baidu (the Google of China) both offer platforms that allow for the creation of AI-generated avatars that can livestream 24/7 at a much cheaper cost than paying a real person to host. Baidu’s digital avatar platform XiLing, which is comparable to US-based Synthesia, allows for creation of digital avatars from existing IP or custom creation based on industry and allows for translation to multiple languages.

The rise of AI-generated avatars, particularly in China, underscores a significant shift in the digital landscape. While they offer cost efficiency and scalability, particularly for companies like Tencent and Baidu, there's an undeniable impact on employment in certain sectors. The staggering projections by Beijing officials highlight not only the commercial potential but also the broad cultural adoption expected in the coming years. As hundreds of thousands of companies dive into the digital human space, one can't help but wonder how this will reshape industries, societal norms, and individual careers in the not-so-distant future. As we stand on the cusp of this AI evolution, it signals us to adapt, innovate, and reconsider the essence of human roles in an increasingly digital world.

Originally featured in The AI China Report #4