AI Avatar Hosts Outperform Humans in China’s Booming Live Commerce Market

In a milestone moment for China's fast-evolving e-commerce sector, artificial intelligence-powered avatars are beginning to outshine their human counterparts.

On June 15, tech entrepreneur and renowned livestreamer Luo Yonghao appeared on Baidu’s livestreaming platform—sort of. For six hours, a hyper-realistic digital version of Luo introduced 133 products, from premium liquor to electronics, with all the humor, gestures, and banter of the real host. But Luo himself wasn’t present. His AI-generated double, trained on his voice, mannerisms, and style, co-hosted the session alongside another AI avatar.

The performance was striking in its realism. The avatars moved chairs, mimicked familiar gestures like tapping a table while talking, and responded to viewer comments in real time. The only noticeable gap: while pretending to drink beer, the avatar didn’t show natural swallowing movements.

Despite this, the stream set new records. Dubbed "Luo Yonghao’s Show Without Luo Yonghao," it attracted over 13 million viewers and generated more than 55 million yuan (approximately 10.4 billion won) in sales. Just 26 minutes in, the digital version had already surpassed the previous month's sales by the real Luo in a one-hour session.

Baidu reported the broadcast generated 97,000 characters of product descriptions using AI and triggered more than 8,300 distinct avatar actions, pulling from 13,000 product databases in real time.

“I was really shocked by the effectiveness of this digital human,” Luo later wrote on Weibo. “I felt a bit dazed, but this is reality.”

A Market Transformed by AI

Live commerce—real-time online sales hosted by personalities—is a billion-dollar business in China. Its value surged during the pandemic, jumping from $61 billion in 2019 to $180 billion in 2020, and climbing steadily to $695 billion by 2023, according to research firm ECDB.

AI has accelerated this transformation. More than 100,000 AI-generated digital humans are now active across various industries, including education and healthcare. In commerce, businesses using digital hosts have cut operational costs by over 80% while increasing sales volume by an average of 62%, Baidu reports.

At the forefront is Baidu, often dubbed the "Google of China." The company launched its AI e-commerce platform Baidu Yuxian in 2023. Since then, digital human live commerce has grown elevenfold. In 2024 alone, Baidu Yuxian’s overall transaction volume rose 200% compared to the previous year, thanks to technologies like AI-driven recommendations and supply chain optimization.

Caixin, a Chinese economic outlet, noted that the Luo Yonghao broadcast proved the commercial viability of AI hosts. Still, it cautioned that most consumers continue to base buying decisions on trust in real people. For AI hosts to achieve lasting impact, ongoing improvements in realism and shifts in consumer behavior will be critical.

Case Study: The Luo Yonghao Livestream

This livestream serves as a landmark case for how AI avatars can transform live commerce. Framed as “Luo Yonghao’s show without Luo Yonghao,” the event marked the first time two digital avatars co-hosted a real-time product showcase powered by Baidu’s ERNIE foundation model.

The Setup

• Hosts: Two AI-generated avatars—one modeled after Luo Yonghao, the other an AI co-host.

• Technology: AI-generated avatars trained on real host behavior, interacting with viewers in real time and generating scripted content from vast product data.

• Duration: 6+ hours of continuous broadcasting.

The Results

• Viewership: Over 13 million cumulative viewers.

• Sales: 55 million yuan in gross merchandise volume.

• Efficiency: 97,000 characters of product descriptions and 8,300+ avatar actions generated from 13,000 data sources—all in real time.

These numbers exceeded Luo’s own previous livestream benchmarks. More notably, the avatars not only presented products but mimicked human-like behavior—gesturing, joking, and reacting to comments with near-realism.

Strategic Impact

For Baidu, this livestream validated the commercial potential of AI avatars in high-stakes retail environments. With over 100,000 digital humans now in active use and adoption spreading across sectors like education and healthcare, this case highlights how AI is moving from novelty to operational tool.

As a model for businesses exploring AI-driven commerce, the Luo Yonghao broadcast illustrates how technology can scale brand personalities, reduce labor costs, and extend engagement far beyond traditional limits.

What This Means

The debut of dual AI avatars hosting a successful livestream marks more than a tech milestone—it signals a shift in how digital commerce might operate in the future. The ability to run engaging, around-the-clock broadcasts without human hosts could dramatically reshape retail labor, costs, and customer engagement.

While China is leading the charge, the implications extend far beyond its borders. For markets like the United States—where livestream shopping is growing but hasn’t yet reached the same scale—AI-generated hosts could offer new ways to scale content, personalize outreach, and reduce production costs. Adoption may hinge on cultural differences in consumer trust, regulatory concerns, and attitudes toward automation, but the commercial potential is clear.

But the long-term role of digital humans will depend on whether technology can sustain human-like trust. For now, the experiment has clearly shown that virtual personalities can do more than just talk—they can sell.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.