AI-Powered Virtual Hosts Disrupt China’s E-commerce Market

China is the world’s leading economy, with a substantial mindset and working style of billions of people inhabiting this giant world population. As per the U.S. Census Bureau report, China had over 1.4 billion residents in 2021, with an increasing population growth of 0.1 per cent. Despite China’s massive number of inhabitants, it is the leading economic hub in the world with advancements in technology and modern techniques.

In this modern era, old-fashioned business and commerce ways have become unacceptable. It leads people to get their earnings digitally, following innovative methods and working styles. E-commerce is one of China’s widely accepted business models, with exceptional annual sales rates. The reason behind this state-of-the-art success in the e-commerce industry is due to the Chinese streamers.

Since the emergence of live streaming in the digital retail industry, it has gained immense popularity in China, becoming one of the best earning methods for many influencers. However, advanced and improved Artificial Intelligence (AI) has developed AI-powered hosts with the same functionality. What are its impacts on live streamers and the Chinese e-commerce industry? Let’s find out.

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Live Streaming in E-commerce

You might know about live streaming and its importance today, but if you are unaware, it is the best way to broadcast and show your online activities on digital platforms. Many gamers use live streaming to entertain their followers and fans with the gameplay.

The rise of live streaming in e-commerce is something unusual as companies and retail businesses employ the services of famous streamers to broadcast their products digitally. The streamers go live with those products in front of them when they start talking about the features and perks of some specific goods.

This market is on a growing track, with new streamers joining the industry and numerous businesses employing their services. It is an essential and efficient technique to help users know about the product from the comfort of their couch via their devices.

AI-Based Virtual Hosts or Computer-Operated Streamers

Undoubtedly, live streamers in the e-commerce industry have a robust impact on sales and lead generation. It also has several demerits, creating room for improvement and innovation. As AI has access to every industry and market, e-commerce is no exception, with the AI-powered virtual hosts making a boom in China.

AI virtual hosts are machine-powered digital systems that employ generative AI to create the required information about the products using various modern technologies. A few of these technologies include Machine Learning (ML), Computer Vision, Natural Language Processing (NLP), and more.

With the potential to generate different kinds of content, such as audio, video, images, texts, etc., AI-powered virtual hosts are a threat to a massive 400,000 streamers in China. Therefore, many platforms and companies are concerned about this modern tech innovation, including Alibaba, Tencent’s WeChat, and many others.

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AI-Powered Virtual Hosts vs Human Streamers

Though the new technology may suffer to a great extent in the market, it offers myriads of benefits to retail stores, individuals, and other businesses also. The incorporation of AI into the e-commerce industry may present a few challenges, but its perks are countless.

Therefore, shifting to a modern system offers many perks which help the entire economy to grow beyond imagination. Let’s compare both marketing and lead generation methods for online retail businesses.

#1. AI-Powered Hosts Are Cost-Effective

AI itself is a costly technology, but its products are cost-effective. It will cost a business to spend money on AI-powered virtual hosts a single time, with its fruits to come repeatedly. The estimated monthly subscription to AI-based streaming services ranges between 500 to 1000 yuan.

The human live-streamers charge more money with a few limitations in their work. A report suggests that the average costs of a Chinese streamer are about 50,000 yuan a month. Hence, businesses, especially small and medium-sized companies, will prioritise AI-powered virtual hosts over humans.

#2. Massive Human Workforce Replacement Due to AI

A few giant Chinese companies offer platforms for live streamers to market and promote a company’s products and goods. Taobao Live, WeChat, and Douyin are some of the famous software or streaming platforms.

A large number of streamers earn their daily wages through these platforms by promoting different kinds of products, from garments to cosmetics, to medical and lifestyle things. Therefore, the rise of AI and its products will offer magical competition to the existing platforms.

It can lead to joblessness and mass-level replacement of over a hundred thousand live-streamers since AI robots are potent and efficient.

#3. Efficiency and Deliverable

When discussing the efficiency of human vs AI-powered hosts, you will choose the machine due to many factors. AI is faster and accessible round the clock. Humans carry emotions and problems which can reduce their efficiency and productivity. 

Human streamers also need rest and can’t offer consistent work quality. At the same time, AI-powered products are free from such limitations. Based on the person operating the system, it can go live without any break, increasing the chances of reaching maximum potential customers.

However, the deliverables or the marketing of AI-powered virtual hosts are based on the input data that may bring some inaccuracy with a lack of emotions and realistic presentation. In this regard, human streamers may bring unique customers to your brand compared to AI hosts.

Frequently Asked Questions

Is Chinese E-commerce a Huge Market?

China is the first-ranked e-commerce hub, with online businesses yielding about half the world’s transactions. The online retail market of China is a trillion-dollar business with massive companies, including Alibaba and others.

Will AI Hosts Replace Human Live Streamers in China?

China is a huge country with the most population in the world. Its commerce market is accordingly big, making room for future technology and innovation. Though AI virtual hosts will impact the live-streaming industry in China, they will never replace them completely.

How Are AI Salesmen Special?

AI-powered virtual salespeople are efficient, productive, faster, and accessible on the go. Due to computer-based operability, businesses and online retail stores will have an extra option to employ its services regardless of the time and money since AI salespersons don’t cost deep pockets.