Beijing, China — June 2025; In a jaw-dropping turn of events, two AI-generated avatars have outperformed human livestreamers by raking in $7.65 million in just seven hours — signaling a seismic shift in China’s e-commerce landscape.
The groundbreaking stream was hosted by Chinese tech giant Baidu in collaboration with renowned entrepreneur and livestreaming icon Luo Yonghao. Instead of going live himself, Luo and his co-host Xiao Mu relied on AI-powered digital avatars that interacted with viewers in real time for over six hours on Baidu’s e-commerce platform, Youxuan.
The result? 55 million yuan in sales — more than Luo’s previous in-person livestream on the same platform, which lasted four hours but generated significantly less revenue. Luo, who boasts nearly 24.7 million followers on ByteDance’s Douyin (China’s version of TikTok), admitted on Weibo that the success of the avatars left him stunned. “The digital human effect has scared me… I’m a bit dazed,” he wrote to his 1.7 million Weibo followers.
A New Digital Frontier in Livestreaming
The AI avatars were built using Baidu’s generative AI model, trained on over five years’ worth of Luo and Xiao Mu’s video content to perfectly mimic their humor, tone, and communication style. The avatars maintained a seamless interaction with viewers throughout the stream — something that would be physically and mentally draining for real hosts.
“This is a DeepSeek moment for China’s entire livestreaming and digital human industry,” said Wu Jialu, Head of Research at Luo’s company Be Friends Holding, referencing the AI company DeepSeek, often called China’s OpenAI rival.
Digital humans, Wu emphasized, not only cut down on massive production costs but also eliminate the need for breaks, allowing 24/7 streaming potential. “We’ve always been skeptical of digital people livestreaming,” Wu admitted. “But Baidu now offers the best digital human product on the market.”
Why It Matters: AI is Reshaping E-Commerce
China’s livestreaming economy exploded during the pandemic, as companies turned to digital channels to reach isolated customers. The trend is now maturing into a full-blown industry revolution.
According to a recent Worldpanel and Bain & Company report, Douyin surpassed JD.com to become China’s second-largest e-commerce platform in 2024, with livestream shopping accounting for a major chunk of those sales. Platforms like Alibaba’s Taobao, JD.com, and even Tencent have also adopted digital avatars and AI anchors to power news, ads, and product streams.
But There’s a Catch: Regulations & Returns
Despite the success, challenges remain. Analysts point to high return rates on livestream-sold products, often driven by impulse buying. And while the technology is sound, compliance and platform policies are now the real hurdles.
Major platforms like Douyin have already started enforcing restrictions on AI avatar usage — particularly if these avatars don’t interact naturally with viewers. AI streamers must now be trained to follow strict product advertising guidelines and adapt to platform-specific regulations.
Wu believes it’s only a matter of time before AI avatars evolve even further — soon capable of multilingual live streams to cater to global audiences.
“The technology’s no longer the barrier,” he said. “Now it’s all about regulation and creative integration.”
What’s Next?
While no date has been set for Luo’s next AI livestream, expectations are high. One thing is clear — China’s AI avatars are not just virtual hosts. They are now real influencers.
And if the $7.65 million haul is any indication, the future of e-commerce might be more artificial than ever — but a lot more profitable too.
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