Virtual Influencers Challenge Human Creators, Sparking Ethical and Economic Concerns

In a world where social media has become a critical platform for brands to connect with consumers, the rise of AI-created virtual influencers is reshaping the landscape. These digital avatars, often indistinguishable from real humans, are not only gaining massive followings but also attracting significant brand partnerships. However, this shift is raising concerns among human creators and broader ethical questions about the future of content creation.

Aitana Lopez, a pink-haired social media sensation with over 200,000 followers, posts selfies and lifestyle content that resonates with her audience. She has been paid around $1,000 per post to promote brands like Olaplex and Victoria’s Secret. The catch? Aitana is entirely fictional, a "virtual influencer" created using artificial intelligence tools.

Aitana is just one of hundreds of digital avatars that have entered the $21 billion content creator economy. These virtual influencers are disrupting traditional models by offering brands a new way to reach audiences at lower costs and with greater control.

Diana Núñez, co-founder of The Clueless, the Barcelona-based agency behind Aitana, explains the initial motivation: "We were taken aback by the skyrocketing rates influencers charge nowadays. That got us thinking, 'What if we just create our own influencer?' We unintentionally created a monster. A beautiful one, though."

The impact of virtual influencers extends beyond social media. Luxury brands have also embraced these digital personas. For example, Noonoouri has partnered with Kim Kardashian’s KKW Beauty, and Ayayi has worked with Louis Vuitton. An Instagram analysis of an H&M advert featuring the virtual influencer Kuki found that it reached 11 times more people and resulted in a 91 percent decrease in cost per person remembering the ad compared to traditional methods.

Becky Owen, global chief marketing and innovation officer at Billion Dollar Boy and former head of Meta’s creator innovations team, notes that while virtual influencers may not drive purchases like human influencers do, they excel in driving brand awareness, favorability, and recall. "It is not influencing purchase like a human influencer would, but it is driving awareness, favourability and recall for the brand," Owen said.

The appeal of virtual influencers to brands is multifaceted. Rebecca McGrath, associate director for media and technology at Mintel, points out that virtual influencers come with fewer risks and more control. "Influencers themselves have a lot of negative associations related to being fake or superficial, which makes people feel less concerned about the concept of that being replaced with AI or virtual influencers," she said. "For a brand, they have total control versus a real person who comes with potential controversy, their own demands, and their own opinions."

However, this shift is not without its critics. Human influencers argue that their virtual counterparts should be required to disclose their non-human status. The concern is that followers may feel misled if they are unaware that the influencer they admire is not a real person.

The broader implications of AI in content creation extend beyond social media and into other professions. As generative AI tools become more sophisticated, there is growing worry that they could displace human workers in various fields. While some see these technologies as disruptive but ultimately beneficial, others fear the loss of jobs and the devaluation of human creativity.

As the debate continues, it's clear that the rise of virtual influencers is a significant trend with far-reaching consequences. The challenge for policymakers, brands, and creators alike will be to navigate this new landscape in a way that balances innovation with ethical considerations and the well-being of those whose livelihoods depend on social media.