Why are AI virtual hosts not yet dominant in live commerce?

In the past few Momentum Works immersion programmes to China, we have visited MCNs and spoken with executives which have embraced virtual hosts, and technology companies that specialise in creating virtual persons. You can find some of our observations below.  

AI virtual hosts will be one of the key themes during Momentum Works Live Commerce Immersion to China on 19-21 March 2024. 

We’ve been speaking to some of you to curate the agenda to give participants an in-depth exposure to this and other key topics including live commerce ecosystem, operational strategies as well as business partnerships. 

We welcome investors, brands, ecommerce enablers/MCNs from Southeast Asia to join the small group on this journey. You can find more details/register here.

Observations of AI virtual hosts from our previous immersions: 

1. Everybody is taking AI virtual hosts seriously – for obvious reasons: you would not want to miss any productivity-enhancing technology breakthrough that your competitor might seize;
2. A few MCNs and live operators are using virtual hosts during non-live hours, to keep their streaming accounts active;
3. To deliver smooth (or “warm, human-like”) experience, virtual hosts now consume enormous amount of computing power. Technologies still need to improve to make processing real time interactions faster and less resource intensive;
4. Another practical challenge is how smoothly digitise the assortment of goods. Live commerce is ultimately about real demonstrations of physical products – this is especially true for categories such as fashion;
5. The platforms’ attitude towards AI virtual hosts have been subtle – neither banning nor promoting. The reason is probably the platforms’ desire to balance engagement (of both consumers and content creators) as well as efficiency;
6. People we have spoken to are optimistic that as technology evolves, platforms will gradually become more welcoming towards AI virtual hosts;
7. Large MCNs are also developing their own technolgogical capabilities, which they hope to provide as SaaS for the ecosystem;
8. “Top human hosts like Austin Li Jiaqi (the ‘lipstick king’) are really a product of luck. For our other accounts as well as millions of SMEs, hiring, training and managing hosts can be quite costly,” founder of a major MCN in Guangdong mentioned why he was optimistic about AI virtual hosts.

AI virtual hosts and other technological trends are one of the key themes during Momentum Works Live Commerce Immersion to China on 19-21 March 2024. 

Through a curated 3 day agenda of company visits, experiences, closed door seminars and networking sessions, you will get in-depth exposure to this and other key topics including live commerce ecosystem, operational strategies as well as business partnerships. You can find more details/register here.