A Quest for Virtual Authenticity

Imagine a gorgeous socialmedia influencer with millionsof followers. She is seated inthe most picturesque settingsurrounded by beautiful people,and she is smiling and havinga ball while sporting the latestsmartwatch she is promoting
on TikTok.

Here’s the twist. She is notreal. She is not human. She isan AI-generated image who hasbecome a virtual influencer withmillions of followers. And – sheis here today. Amongst us. Takea look at Lil Miquela or Lu DoMagalu on Instagram and youget the idea. AI influencers areshaping the narrative of brandingand storytelling.

The implications of this scenarioon marketing are profound. Howare these influencers beingreceived by different generations?How can brands navigate this newbalance between what is authenticand real and what is authentic
and artificial?

Virtual influencers havetransitioned from quirky noveltiesto significant players in marketingstrategies. Lil Miquela is a 19-year-oldBrazilian American virtual personacreated by Brud. With over 2.6million Instagram followers andearning up to $10 million annuallythrough brand partnerships, sheis one of the most prominentexamples of how AI can redefineinfluence. Similarly, Lu Do Magalu,developed by Brazilian retail giantMagalu, engages her 7.1 millionfollowers with unboxing videos,product reviews and tutorials,effectively bridging the gapbetween brands and consumers.On the other side of the world,we have Imma, Japan’s virtual ‘It Girl.’She is the first virtual model fromJapan and one of the pioneersin virtual modelling, working withsome of the biggest names infashion like Valentino and Nike.

Virtual influencers have gainedtraction for several reasons. Firstly,they have scalability. As digitalpersonas, they come without thedrama a real influencer may bringand can reach multiple audiencesacross multiple platforms withhuge efficiencies. Secondly, theyoffer consistency and control.They never make mistakes intheir messaging and brands canmaintain absolute alignmentwith their marketing objectiveswithout the unpredictability ofreal-life controversies. Thirdly,they provide creative flexibility;they can embody any aestheticor narrative, enabling unique,innovative campaigns.

Although the emergence of AIinfluencers marks a paradigmshift, maximising their potentialrequires understanding howdifferent generations respond tothem. Interestingly, the leadingAI influencers originate fromcountries like Brazil and India,where sizable segments ofsociety are underprivileged andmay be more vulnerable. Take a look at Kyra, India’s first AI influencer, who has gained popularity by fusing relatability with aspirationalaesthetics, further supporting thenotion that such personas canenthral audiences from variedsocio-economic backgrounds.

1. Generational Reactions

Raised in an analogueworld, Gen X is the most scepticalabout AI influencers. Authenticityis paramount and they are likelyto view virtual influencers asgimmicky or inauthentic. They valuedeeper, long-form content andreal-life narratives, making AI-drivenmarketing a tough sell. However,when positioned thoughtfully –perhaps through storytelling thathighlights the technology behind AIinfluencers – brands could sparkcuriosity rather than scepticism.

Millennials straddlethe line between nostalgia forauthenticity and excitementfor futurism. They are open totechnological advancement butremain cautious about overtartificiality. AI influencers couldresonate with them if they embodyrelatable values and interests.For example, a virtual influencerpartnering with a sustainablefashion brand could strike a chordwith Millennials’ environmentalconsciousness. Still, thisgeneration demands a balance –they want innovation without losingthe human touch.

Gen Z is a digital native. They livein a world where the lines betweenreality and virtuality are so fine thatthey are barely visible. They are opento the new concepts technologybrings, including those of quirky AIinfluencers. They thrive on short-formcontent, making them prime targetsfor AI-driven content. But to win themover, you need a deeply embeddedand integrated storyline of a characterthat aligns with their culture.

For Gen Alpha,growing up in a world saturatedwith AR, VR and gaming, AIinfluencers are the norm. Theyinteract with virtual characters ingames and digital spaces daily,making them highly receptive to AI personas. Brands targetingthem can explore AI-driven gaminginfluencers, leveraging theirimmersive digital habits to driveengagement and loyalty.

2. The AI Characteristics, Possibilities and Risks

The way AI influencersare created and portrayed determinestheir level of success. Althoughthey bring a set of challenges, theopportunities they bring are countless.Success here depends on: One,relatability; AI characters are moreinteresting when they have flaws,humour and a hint of imperfection.Two, diversity; brands need to givepriority to personalities to prevent amonoculture of sameness. Three,storytelling; even if AI influencers arenot human, they can feel genuine ifnarratives reflect the values and goalsof the target audience.

In terms of risk, considerauthenticity. The increase in AIinfluencers raises the possibilityof homogenisation. Algorithmsamplify sameness, serving similarpersonas to specific demographicsand narrowing their worldviews.Also, consider trust. If audiencesbelieve they are being tricked, anoverreliance on AI identities maydamage trust. Companies need totread a careful balance betweenmaking sure their virtual influencersare unique, interesting and ethical.

3. Industry Applications

AI influencers offer opportunitiesacross industries, but theirapplication must be tailored toresonate with specific audiences.

Luxury marketinghinges on heritage, craftsmanshipand authenticity. Integrating AIinfluencers in this space poseschallenges. Can a digital personaconvey the rich history of a luxurybrand? To succeed, AI influencersmust embody sophistication andexclusivity while aligning with thebrand’s core values.

Gaming is a natural fitfor AI influencers. Virtual gamers canseamlessly blend into Gen Alpha’sdigital ecosystem through immersivecontent. For example, an AI gaminginfluencer could partner with a brandto promote a new title, creating buzzand driving downloads.

FMCG and fashion brands can leverageAI influencers to disrupt traditionalnarratives. Data suggests thatconsumers (particularly Gen Z andGen Alpha) are more likely to engagewith influencers who align with theirvalues. A study by the InfluencerMarketing Hub found that 63% ofGen Z prefer influencers promotingrelatable, everyday products. Virtualinfluencers can deliver this byembodying aspirational personastailored to specific audience segments.However, overuse or poor executioncould alienate older generations,emphasising the need for balance.

AI influencerspresent challenges in sports andin music. In sports, AI influencerscould overshadow authenticstories of struggle, determinationand triumph that make athletesrelatable. Virtual athletes mightmonopolise sponsorship deals andmedia attention, side-lining realathletes. In music, AI-generatedperformers could produce songsthat cater to consumer preferences,but at the cost of overshadowinggenuine artistic expression. Thiscould discourage emerging artistswho rely on personal experiencesand cultural contexts to createmeaningful work. The risk is aworld where creativity becomesalgorithmically optimised, strippingaway the imperfections andindividuality that make art special.

4. Ethical and Psychological Implications

Brands mustdisclose when they use AIinfluencers (transparency). Theline between marketing andmanipulation blurs when audiencescan’t distinguish real from virtual(deception). AI influencerscould alter how people perceivethemselves and others, especiallyif they set unattainable standards ofbeauty or success (psychological).

5. Erosion of Critical Thinking

Algorithms prioritise contentthat reinforces user preferences,narrowing perspectives andreducing exposure to other ideas.This is of particular concern foryounger audiences (Gen Alpha)whose cognitive and socialdevelopment may be shaped byone-dimensional narratives.

6. Manipulation at Scale

AI personas can be scaledinfinitely and hyper-optimised toexploit psychological triggers, raisingthe risk of large-scale manipulationamong impressionable audiences.

7. AI Bias and Inclusivity

Algorithms often mirror societalbiases in the data used to trainthem. In this respect, AI influencerscould perpetuate stereotypesor exclude underrepresentedgroups. To tackle this, brands mustinvest in diverse datasets andcontinuously audit their AI tools,a process that is both resourceintensive and complex.

Brands will struggle to strike abalance in a world where authenticityis both a paradox and a demand.How they do it will determine thedirection of branding in the future. Arewe prepared to manage the dangersand welcome the opportunities?

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