Imagine a gorgeous social media influencer with millions of followers. She is seated in the most picturesque setting surrounded by beautiful people, and she is smiling and having a ball while sporting the latest smartwatch she is promoting
on TikTok.

Here’s the twist. She is not real. She is not human. She is an AI-generated image who has become a virtual influencer with millions of followers. And – she is here today. Amongst us. Take a look at Lil Miquela or Lu Do Magalu on Instagram and you get the idea. AI influencers are shaping the narrative of branding and storytelling.

The implications of this scenario on marketing are profound. How are these influencers being received by different generations? How can brands navigate this new balance between what is authentic and real and what is authentic
and artificial?

Virtual influencers have transitioned from quirky novelties to significant players in marketing strategies. Lil Miquela is a 19-year-old Brazilian American virtual persona created by Brud. With over 2.6 million Instagram followers and earning up to $10 million annually through brand partnerships, she is one of the most prominent examples of how AI can redefine influence. Similarly, Lu Do Magalu, developed by Brazilian retail giant Magalu, engages her 7.1 million followers with unboxing videos, product reviews and tutorials, effectively bridging the gap between brands and consumers. On the other side of the world, we have Imma, Japan’s virtual ‘It Girl.’ She is the first virtual model from Japan and one of the pioneers in virtual modelling, working with some of the biggest names in fashion like Valentino and Nike.

Virtual influencers have gained traction for several reasons. Firstly, they have scalability. As digital personas, they come without the drama a real influencer may bring and can reach multiple audiences across multiple platforms with huge efficiencies. Secondly, they offer consistency and control. They never make mistakes in their messaging and brands can maintain absolute alignment with their marketing objectives without the unpredictability of real-life controversies. Thirdly, they provide creative flexibility; they can embody any aesthetic or narrative, enabling unique, innovative campaigns.

Although the emergence of AI influencers marks a paradigm shift, maximising their potential requires understanding how different generations respond to them. Interestingly, the leading AI influencers originate from countries like Brazil and India, where sizable segments of society are underprivileged and may be more vulnerable. Take a look at Kyra, India’s first AI influencer, who has gained popularity by fusing relatability with aspirational aesthetics, further supporting the notion that such personas can enthral audiences from varied socio-economic backgrounds.

1. Generational Reactions

Raised in an analogue world, Gen X is the most sceptical about AI influencers. Authenticity is paramount and they are likely to view virtual influencers as gimmicky or inauthentic. They value deeper, long-form content and real-life narratives, making AI-driven marketing a tough sell. However, when positioned thoughtfully – perhaps through storytelling that highlights the technology behind AI influencers – brands could spark curiosity rather than scepticism.

Millennials straddle the line between nostalgia for authenticity and excitement for futurism. They are open to technological advancement but remain cautious about overt artificiality. AI influencers could resonate with them if they embody relatable values and interests. For example, a virtual influencer partnering with a sustainable fashion brand could strike a chord with Millennials’ environmental consciousness. Still, this generation demands a balance – they want innovation without losing the human touch.

Gen Z is a digital native. They live in a world where the lines between reality and virtuality are so fine that they are barely visible. They are open to the new concepts technology brings, including those of quirky AI influencers. They thrive on short-form content, making them prime targets for AI-driven content. But to win them over, you need a deeply embedded and integrated storyline of a character that aligns with their culture.

For Gen Alpha, growing up in a world saturated with AR, VR and gaming, AI influencers are the norm. They interact with virtual characters in games and digital spaces daily, making them highly receptive to AI personas. Brands targeting them can explore AI-driven gaming influencers, leveraging their immersive digital habits to drive engagement and loyalty.

2. The AI Characteristics, Possibilities and Risks

The way AI influencers are created and portrayed determines their level of success. Although they bring a set of challenges, the opportunities they bring are countless. Success here depends on: One, relatability; AI characters are more interesting when they have flaws, humour and a hint of imperfection. Two, diversity; brands need to give priority to personalities to prevent a monoculture of sameness. Three, storytelling; even if AI influencers are not human, they can feel genuine if narratives reflect the values and goals of the target audience.

In terms of risk, consider authenticity. The increase in AI influencers raises the possibility of homogenisation. Algorithms amplify sameness, serving similar personas to specific demographics and narrowing their worldviews. Also, consider trust. If audiences believe they are being tricked, an overreliance on AI identities may damage trust. Companies need to tread a careful balance between making sure their virtual influencers are unique, interesting and ethical.

3. Industry Applications

AI influencers offer opportunities across industries, but their application must be tailored to resonate with specific audiences.

Luxury marketing hinges on heritage, craftsmanship and authenticity. Integrating AI influencers in this space poses challenges. Can a digital persona convey the rich history of a luxury brand? To succeed, AI influencers must embody sophistication and exclusivity while aligning with the brand’s core values.

Gaming is a natural fit for AI influencers. Virtual gamers can seamlessly blend into Gen Alpha’s digital ecosystem through immersive content. For example, an AI gaming influencer could partner with a brand to promote a new title, creating buzz and driving downloads.

FMCG and fashion brands can leverage AI influencers to disrupt traditional narratives. Data suggests that consumers (particularly Gen Z and Gen Alpha) are more likely to engage with influencers who align with their values. A study by the Influencer Marketing Hub found that 63% of Gen Z prefer influencers promoting relatable, everyday products. Virtual influencers can deliver this by embodying aspirational personas tailored to specific audience segments. However, overuse or poor execution could alienate older generations, emphasising the need for balance.

AI influencers present challenges in sports and in music. In sports, AI influencers could overshadow authentic stories of struggle, determination and triumph that make athletes relatable. Virtual athletes might monopolise sponsorship deals and media attention, side-lining real athletes. In music, AI-generated performers could produce songs that cater to consumer preferences, but at the cost of overshadowing genuine artistic expression. This could discourage emerging artists who rely on personal experiences and cultural contexts to create meaningful work. The risk is a world where creativity becomes algorithmically optimised, stripping away the imperfections and individuality that make art special.

4. Ethical and Psychological Implications

Brands must disclose when they use AI influencers (transparency). The line between marketing and manipulation blurs when audiences can’t distinguish real from virtual (deception). AI influencers could alter how people perceive themselves and others, especially if they set unattainable standards of beauty or success (psychological).

5. Erosion of Critical Thinking

Algorithms prioritise content that reinforces user preferences, narrowing perspectives and reducing exposure to other ideas. This is of particular concern for younger audiences (Gen Alpha) whose cognitive and social development may be shaped by one-dimensional narratives.

6. Manipulation at Scale

AI personas can be scaled infinitely and hyper-optimised to exploit psychological triggers, raising the risk of large-scale manipulation among impressionable audiences.

7. AI Bias and Inclusivity

Algorithms often mirror societal biases in the data used to train them. In this respect, AI influencers could perpetuate stereotypes or exclude underrepresented groups. To tackle this, brands must invest in diverse datasets and continuously audit their AI tools, a process that is both resource intensive and complex.

Brands will struggle to strike a balance in a world where authenticity is both a paradox and a demand. How they do it will determine the direction of branding in the future. Are we prepared to manage the dangers and welcome the opportunities?

Faizan Syed is Founder and CEO, East River.
faizan@eastriverdigital.com