Ovid's "Metamorphoses" states, "Nature loves novelty, ever eager to reshape the old and create the new." This sentiment resonates in today's internet celebrity economy, where digital clones and AI-generated influencers have emerged, preserving the form but transforming the experience.

Caryn Marjorie, an American internet celebrity who ventured into the AI space early, has achieved an annual income of RMB 400 million. This feat is attributed to her digital clone, CarynAI. However, due to the uncontrollable evolution of AI avatars, the original creator chose to shut down CarynAI earlier this year.

The achievement of "RMB 400 million annual income" underscores the lucrative potential of the "AI + internet celebrity" model, attracting hordes of aspirants. Despite Marjorie's decision to step down, the fire of "AI + internet celebrity" continues to rage, intensifying in China and spawning new forms.

Internet Celebrities Face AI Competition

In November 2018, Sogou unveiled the world's first 2D virtual anchor in China. By 2020, the technology had evolved to 3D, giving birth to "New Xiaowei," the world's first 3D AI-synthesized anchor, arguably the pioneer of AI anchors in China.

Sogou's "New Xiaowei"

Yet, the virtual nature of these avatars makes it easy to discern their artificiality.

As AI technology advances, the realism of generated human images has skyrocketed. Two primary forms have emerged: AI face-swapped anchors and pure AI digital human anchors. With the support of large AI models, AI digital humans have become more human-like, while AI face-swapped anchors, backed by real emotions, offer a more vibrant and engaging interactive experience.

For instance, Kuaishou introduced its digital human product "Nvwa" in March this year, and JD.com launched "Cai Xiao Dong," a digital anchor modeled after its founder Liu Qiangdong. In April, "Cai Xiao Dong's" debut on JD.com generated over RMB 50 million in transactions.

But what's most astonishing is the emergence of AI internet celebrities on Xiaohongshu, which are nearly indistinguishable from the real thing. For example, the following two images are AI-generated, capturing this year's popular themes like "road cycling" and "cycling fitness" to create an athletic beauty persona.

Source: WeChat Chat Record

Judging by the actual display results, most posts receive hundreds or even thousands of likes, with many users inquiring about purchase links or engaging in discussions. Clearly, users cannot distinguish between the real and the fake.

Using highly realistic images as material, short videos of 5 to 10 seconds can be created. After multiple adjustments, skin and hair textures, lighting, and shadows become more refined. Adding scripts, voiceovers, and adjusting lip movements further enhances the realism of the videos.

Image Source: Tech Futurism

This is just the breakthrough in realism. The astounding leaps in production and promotion efficiency are even more impressive.

An AI internet celebrity "producer" shared that he operates 1,327 Xiaohongshu accounts simultaneously, managed through account matrix software. Each account performs well and remains undetected by Xiaohongshu's algorithms.

The fact that one person can manage such a vast number of accounts underscores the efficiency of content and material production. In the face of such high-efficiency output, real internet celebrities, burdened with makeup, skincare, topic research, editing, and image retouching, struggle to keep up.

Just as they are at their peak, real internet celebrities encounter such formidable competitors. Not to mention that human energy is limited, beauty fades, and the window of opportunity is fleeting.

Will AI Replace Outdated Internet Celebrity Endorsements?

Yet, the formidable competitors internet celebrities face extend beyond increasingly realistic AI counterparts.

Ultimately, internet celebrities aim for massive traffic, which translates into monetization potential. Many internet celebrities eventually turn to product endorsements, a proven path with undeniable earning power. However, the entire supply chain of internet celebrity endorsements is fraught with hidden dangers that frequently surface.

For example, Sanzhiyang, a top-tier live-streaming agency on Douyin, stands at the pinnacle of traffic but also faces intense scrutiny. Recently, products endorsed by Sanzhiyang have been embroiled in controversies over quality control.

Source: Hefei High-tech Zone Announcement

During the CCTV 315 Gala, a brand of braised pork belly with preserved vegetables, once a bestseller in Sanzhiyang's live streams, was exposed for using inferior meat. Subsequently, in the Meicheng mooncake incident, Sanzhiyang was again implicated in selling suspected counterfeit Moutai liquor in June this year. The controversies surrounding internet celebrity endorsements show no signs of abating.

This is not an isolated case. While internet celebrities excel at attracting traffic, they are not known for their quality control capabilities. Despite their enduring popularity, turning traffic into endorsements has become a risky business.

From a role perspective, internet celebrities are more like third-party sales representatives, responsible for executing sales tasks and receiving commissions upon completion, while also relinquishing responsibility for the products.

This "avoiding responsibility" model incentivizes internet celebrities to pursue profits relentlessly. The rise of AI internet celebrities may offer a new direction.

For instance, AI can be used to create a matrix of internet celebrity accounts for "account nurturing" before selling these established accounts with traffic to merchants or brands. This aligns AI internet celebrities and merchants as stakeholders, directly connecting product promotion and sales. Brands can better control content output, similar to celebrity endorsements where the celebrity promotes but does not directly participate in sales.

By segregating responsibilities, accountability for product compliance and oversight shifts back to the merchants and brands at the source. This approach also mitigates exaggerated claims during the promotion phase.

Although the concept of using internet celebrities for endorsements remains unchanged, the shift from real internet celebrities to AI counterparts refocuses attention on the products themselves, a positive trend.

Internet Celebrities as Commodities: A New Perspective on Monetization Models

In terms of traffic monetization, leveraging AI to create an internet celebrity matrix resembles a "refurbished" version of traditional internet celebrity monetization models.

Building an AI internet celebrity matrix involves four steps: generating AI beauties that conform to mainstream aesthetics; crafting highly interactive copy that taps into trending topics; establishing unique personas; and adding creativity to interactions and content output.

These steps mirror the traditional path to creating internet celebrities. While the process is similar, the nature differs significantly. While successful internet celebrities in the past spawned independent entities or individuals, AI internet celebrities are directly transformed into "tradable commodities," with traffic value realized instantly.

This approach benefits both merchants and brands by restoring control over endorsements and mitigating the unpredictability that arises when internet celebrities grow into influential figures.

Furthermore, treating AI internet celebrities as commodities for packaged sales resembles today's knowledge-based payment model, converting valuable physical or virtual assets into traffic and, ultimately, revenue.

Image Source: Movie Screenshot from "Cloud Atlas" (a group of mass-produced AI simulations)

Interestingly, this model democratizes internet celebrity creation, no longer exclusive to those with exceptional looks or proficiency in beauty and makeover techniques. Mastering the AI internet celebrity production process enables mass "cultivation."

This is good news not only for merchants and brands but also for ordinary people.

In today's traffic-driven internet celebrity economy, traffic is crucial. However, AI technology is transforming how traffic is accumulated and monetized.

This world loves to innovate, constantly creating new things. Only those who grasp trends and seize opportunities can stay ahead of the curve and ride the wave of the times.

Source: Hong Kong Stocks Research Institute