TikTok Develops AI Avatars for Advertising, Stirring Creator Concerns

TikTok is advancing its AI technology to create virtual influencers that could potentially disrupt traditional content creators' revenue streams.

TikTok is reportedly developing AI-powered virtual influencers to create content for advertisers, potentially affecting the earnings of human creators.
The new AI avatars are designed to read scripts and promote products directly from advertisers, offering more control over ad content.
Concerns arise among existing creators as AI influencers could compete for the same advertising funds, especially after the shutdown of TikTok's creator fund.
Previous tests of similar AI avatars by TikTok showed lower e-commerce sales compared to human influencers, though the company believes they can complement human creators.
The development of AI avatars is still in the early stages, with ongoing discussions with advertisers to gauge interest.