TikTok, the widely-used platform for short videos, is reportedly in the process of integrating artificial intelligence (AI) to create virtual influencers. These AI-generated figures are meant to produce content promoting products and services for brands on the platform, according to recent reports. The new technology will allow these influencers to read scripts created from prompts or directly supplied by advertisers. This development has the potential to spark controversy, especially if it disrupts the advertising revenues for existing creators on the site, who heavily rely on such deals for income.
A report from The Information (via Technology News) indicates that TikTok is advancing an AI framework aimed at generating virtual influencers that would feature in videos geared toward promoting and selling various products for advertisers. The report, citing unnamed sources, mentioned that TikTok has begun conversations with advertisers to gauge their interest in this emerging feature, which is currently in its initial development phases and may evolve over time. There are also plans for this feature to potentially extend to sellers on TikTok Shop.
From the perspective of advertisers, the introduction of AI influencers could offer more control over content direction and the types of influencers suitable for their campaigns. This might also lead to cost reductions, though this remains unverified. However, many creators on TikTok may view this move as a significant threat to their potential earnings.
Last year, TikTok creators faced a major setback when the platform announced it would discontinue its creator fund, which had allocated $1 billion (approximately Rs. 8,340 crores) to monetize content creators in the US, UK, Germany, and France, as confirmed by another report from Technology News. Although the company introduced a new Creativity Programme to replace it, this shift resulted in diminished earning opportunities for many creators. The addition of AI influencers competing for the same advertising dollars could further strain revenue options for current content creators.
Interestingly, the report points out that TikTok had previously experimented with a similar AI avatar feature, finding that these virtual characters did not drive ecommerce sales as effectively as human influencers. Nonetheless, TikTok remains optimistic about the potential for AI creators to work alongside human creators on the platform.