Chinese tech companies are extending their efforts through generative artificial intelligence (AI), aiming to create virtual live-streaming hosts that have the capability to intensify the competition as the country races to establish a global live-streaming e-commerce hub in major cities.
AI-Powered Virtual Hosts
In China's extensive live-streaming e-commerce sector, South China Morning Post reported that products ranging from lipsticks to rocket launch services are sold, generating billions in sales during major retail events.
As cities like Shenzhen and Hangzhou compete to become global live-streaming e-commerce hubs, Chinese tech companies are leveraging generative artificial intelligence (AI) to develop virtual hosts capable of round-the-clock sessions, intensifying the competition in this industry.
Generative AI involves algorithms like ChatGPT, enabling the creation of various content types such as audio, code, images, text, simulations, and videos. This application of generative AI highlights its potential to disrupt traditional occupations in China and the broader job market.
The emergence of generative AI-powered virtual hosts has the potential to disrupt the jobs of over 400,000 human live-streamers across various platforms, including Alibaba Group Holding's Taobao Live, Tencent Holdings' WeChat, ByteDance-owned Douyin, and Kuaishou Technology.
Incorporating AI
Chinese major brands are increasingly intrigued by the idea of employing generative AI-driven virtual hosts for their online campaigns. For instance, TS2 reported that Beijing-based startup WH Zones disclosed that local electronics giants and international cosmetics conglomerates are collaborating with them to launch online campaigns featuring virtual live-streamers.
The integration of virtual host technology with the influence of human celebrities is expected to boost online sales, as per Chief Executive Officer Gao Zilong. He mentioned that his company is currently collaborating with significant consumer brands, including a local electronics giant and an international cosmetics conglomerate, to introduce online campaigns in August.
Meanwhile, a prominent online search giant in China called Baidu implemented a workflow using its extensive language model to create scripts for human hosts during live-streaming sessions. The success of this solution has been demonstrated, as one vendor utilized it to sell tickets to Shanghai Disneyland, resulting in sales of 540,000 yuan within a month.
Live Streaming in China
For a decade, live streaming has been immensely popular in China, with 325 million people regularly tuning in by June 2016. In the same year, Wired reported that companies started integrating sales channels into their livestream offerings, including with fashion retailers Mogujie and Taobao, leading the way by launching their services in March and April 2016, respectively.
At first, Meta delved into live shopping on its platforms Facebook and Instagram. However, the company later chose to discontinue the livestream e-commerce features for both services without making a significant public announcement.
In contrast, Amazon introduced its Amazon Live platform in 2019 and continued to hold live streaming events for its Prime Day sales events in 2021 and 2022. These events even featured appearances from celebrities.
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