The Rise of AI Celebrities and Transformation of the Customer Engagement

In 2016, I examined the promising intersection of AI and consumer analytics, looking at how emerging technologies might enhance established business models for customer engagement. My investigation predicted significant growth in the use of AI to engage and influence customers. This has led me to develop the "IDEAL" customer engagement model which I shared at SEAMLESS Asia conference in 2019, which I focused on the importance of direct and emotive engagement for fostering lasting customer relationships. In 2020, I explored the concept of memory influencing, demonstrating how brands could leverage memory hacking combined with data and AI to enhance consumer desirability. I further discussed on the changing landscape and digitalisation of retail businesses in 2022.

Fast forward to 2024, eight years after my initial insights into the potential of AI and machine learning, we've witnessed an accelerated progression in AI development and adoption, particularly in Generative AI. Today, let us delve deeper into this exciting development within the realm: AI celebrities. These digital personas more than just innovations; they will the potential to revolutionise the way brands interact with consumers, driving engagement through personalised and omnipresent experiences.

Personalised Engagement Through AI Celebrities

Traditionally, celebrities have endorsed products, appeared in advertisements, and engaged with fans in a somewhat unidirectional manner. However, over the past 18 months, there has been a notable emergence of AI-generated personalities that are reshaping this traditional landscape. According to KBV Research, the global virtual influencer market size is projected to reach $37.8 billion by 2030, rising at a CAGR of 38.1% from 2023 to 2030. (KVBResearch, 2024).

Among these innovations, implementations such as Nova and Digital Marilyn Monroe created by Soulmachines aim to provide a digital human face to conversational AI. This has enhanced interactions beyond simple voice commands. Other startups like Asiabots and Synthesia are focusing and riding on the growing adoptions of AI Chatbots.

Most interestingly at the other end of the spectrum are AI celebrities like IITERNITI a K-pop group innovated by Pulse9 AI. Such AI celebrities are heralding a new era of engagement and opening fresh frontiers for marketers. BBC reported that the global digital human and avatar market size is projected to reach $527.58 billion by 2030, indicating significant commercial potential for AI-powered virtual K-pop groups (BBC, 2022). Furthermore, major K-pop agencies are already investing heavily in virtual elements for their artists, with groups like aespa and Blackpink incorporating AI avatars. (allkpop, Jul 2022)

Beyond mere conversational AI, IITERNITI has made its debut as K-pop celebrities, appearing on MTVs, in dramas, and on magazine covers. Each member of the IITERNITI group is not only involved in musical performances but is also carefully imbued with distinct personalities that have rendered them more relatable to fans (KProfiles). When coupled with advanced deep learning techniques and powered by generative AI, these digital personas can interact dynamically with consumers, thereby fostering a level of personalisation previously unattainable.

[IITERNITI] ???? 'DTDTGMGN' MV (youtube.com)

This technological advancement signifies a substantial transformation in how brands engage with audiences, marking a pivotal shift in the dynamics of consumer interaction. The integration of AI into celebrity personas is beyond simple addition to the entertainment industry but a reinvention of how brands can maintain continuous, personalised, and meaningful connections with consumers globally. (Technode, 2023)

Omnipresence and Brand Ambassadorship

There are many advantages of AI celebrities. For example, they can be omnipresent, and existing simultaneously in multiple media channels and digital platforms without the constraints of human limitations. Their ability to function as brand ambassadors is enhanced by their availability 24/7, across all time zones and regions as well as language barriers. For example, an AI pop star can release music videos, participate in social media interactions, and appear in virtual concerts globally without ever needing a break. This non-stop engagement cycle enables brands to maintain a constant presence in their consumers' lives.

Data-Driven Consumer Influence

Integrating AI celebrities with consumer analytics platforms offers unprecedented opportunities. By engaging with consumers, these AI entities can gather vast amounts of data on preferences, behaviours, and responses. When analysed, this data yields deep insights, enabling brands to tailor their marketing strategies with exceptional precision. (Edmas N, 2019). This continuous interaction ensures that consumer feedback is perpetually incorporated, facilitating real-time adjustments to marketing tactics and brand messaging.

With the capability to engage in regular conversations and gain intimate insight into consumers’ lives, AI celebrities can cultivate trust and empathy with consumers, subtly influencing their choices. This marks a significant evolution from traditional marketing approaches, aligning perfectly with the models I have previously proposed. It exemplifies how modern marketing transcends conventional boundaries, achieving a level of consumer engagement and personalisation that was once unattainable. (Yuping, 2022)

Media Agencies' Perspective on AI Personalities

From a media agency’s perspective, working with fully digital AI personalities offers several distinct advantages. Primarily, these AI entities come with full rights ownership, allowing agencies and their client brands full creative and operational control. This control extends to the avoidance of scandals (Stacy J, 2023) or negative publicity that can occasionally beset human celebrities, thus protecting the brand's reputation. Furthermore, the operational parameters of AI celebrities can be finely tuned to align with strategic brand objectives without the unpredictability associated with human stars. According to DIGIDay (Digiday, Mar 2024), the virtual/AI influencer segment is growing faster than the overall influencer marketing market, as brands seek more cost-effective and scalable influencer solutions and fine new ways to grow.

However, the use of AI does not diminish the value of human celebrities. Real-life celebrities bring their established followings, genuine interactions, and emotional depth that AI has yet to fully replicate. The clout and existing fan base that human celebrities bring can be a significant advantage for brands seeking immediate impact and credibility. For example, Idolive is helping celebrities in Singapore to be more accessible to brands and scale through the creation of their digital twins. On the other hand, unlike pure virtual AI celebrities, there will be ethical considerations. For instance, the use of a younger or beautified digital version of the real celebrities, and if celebrities or their agencies should continue to monetise from their appearance after death may draw controversies. (Journal of Medical Ethics)

Therefore, one may argue that pure virtual influencers can provide a more reliable, less expensive, and always available alternative to human influencers, while allowing brands to maintain full control over the content. This can help avoid the risks and tensions associated with human influencers, such as reputational and behavioural issues (Oilhab, 2024) especially in the world of K-celebrities where often hear tragic news of young celebrities.

The Model of Engagement: From Analytics to Influence

Reflecting on my IDEAL model, the integration of AI celebrities propels us towards a more refined approach, where attention is seamlessly captured through interactive and personalised content delivered by AI. The interest and desire are cultivated through AI's ability to present tailored interactions based on the analytics gathered during engagements. Finally, the action is no longer just a purchase but an ongoing interaction, capturing, analysing, and learning of the customer’s preferences that continually enhances customer satisfaction and loyalty.

Strategic Implications for Brands

For brands, the evolution towards AI-driven celebrity engagement requires a strategic overhaul. AI celebrities should not be viewed merely as tools for occasional campaigns. Instead, they must be integrated into the core marketing strategy, contributing to a holistic approach that blends online and offline experiences, influences consumer behaviour, and drives brand loyalty. (Shane, 2023).

Brands will need to invest in robust AI platforms and skilled teams capable of managing the complex data streams and behavioural insights generated by these interactions. Furthermore, the ethical implications of such deep data integration and influence require careful consideration to maintain consumer trust and compliance with data protection regulations.

Conclusion

AI celebrities represent a transformative development in the nexus of entertainment, marketing, and consumer analytics. As these digital entities become more sophisticated, their role in marketing will transcend traditional boundaries, making them integral to the narrative of brand-consumer relationships. The future of brand engagement lies in the ability to not only understand but also shape consumer preferences and behaviours, crafting a market of ideal consumers who are as engaged with the brand as they are with the AI personalities that represent it.

In this new era, the potential for AI to drive brand loyalty and consumer satisfaction is immense, promising a future where brand interactions are not just personalised but deeply influential.

About the Author

Edmas Neo, is a seasoned tech ecosystem developer and an early-stage investor, and an MBA graduate from Alliance Manchester Business School. His investments include media and entertainment companies like Techstorm TV, Pulse 9 AI, and Seoulz.com. He also founded a Web3 community with over 700 members and has published numerous articles on emerging media technologies, predicting key trends in the sector.

Reference:

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