Artificial intelligence has redefined livestreaming commerce in China, as AI-powered avatars outperformed human influencers by generating 55 million yuan ($7.65 million) in just over seven hours on Baidu’s Youxuan platform, CNBC reported.
The livestream, hosted by the Chinese entrepreneur Luo Yonghao and his co-host, Xiao Mu, used digital avatars powered by Baidu’s generative AI. These avatars, trained on five years of the hosts’ previous videos, mimicked their style, humour and mannerisms with striking accuracy.
The numbers speak for themselves. Luo’s previous livestream on the same platform – conducted without the avatars – ran for over four hours and failed to match the order volume achieved in this AI-powered session.
‘The digital human effect has scared me … I’m a bit dazed,’ Luo admitted to his 1.7 million Weibo followers.
Beyond the wow factor, AI avatars offer major business advantages: they reduce costs, eliminate the need for large production crews, and can operate 24/7 without fatigue.
‘We have always been skeptical about digital people livestreaming,’ said Wu Jialu, head of research at Be Friends Holding, one of Luo’s companies. ‘But this is a DeepSeek moment for China’s entire livestreaming and digital human industry.’
Digital avatars are the latest evolution in China’s rapidly growing livestream shopping sector – a trend supercharged by the pandemic and economic slowdown.
With millions turning to livestreaming for income, platforms like Douyin – China’s top short video and livestreaming app – have already overtaken traditional players like JD.com in e-commerce sales, according to Worldpanel and Bain & Company.
In 2025, China remains the world’s largest and fastest-growing e-commerce market, with retail sales expected to hit $1.57 trillion and social commerce projected to surpass $537 billion.
AI-driven innovations – like livestreaming avatars and personalised shopping – are reshaping the landscape, while mobile-first platforms and integrated payment systems dominate.