Brands turning to AI influencers for festivals sparks debate on authenticity

Have you ever stumbled upon an influencer on Instagram who seems flawless—complete with beautiful visuals, witty captions, and an undeniable allure? What if I told you that behind this captivating persona lies a sophisticated algorithm?  We are witnessing the rise of virtual influencers, brought to life through Computer-Generated Imagery (CGI).

In 2024, an astonishing 69.1% of marketers have incorporated AI into their strategies, reshaping everything from content creation to hyper-targeted campaign optimisations, as noted by the AI Marketing Benchmark Report 2024. India is a hotbed for this transformation, with brands like Zomato, Swiggy, Meesho using AI chatbots to create personalised experiences for millions of users.

Take Ambuja Cement’s latest ad for example—an AI-generated digital film that captures the essence of Durga Puja. By transcribing the ad into regional languages, that resonates with a wider audience. 

However, not everyone is sold. Despite the clear advantages of AI in marketing, 36.7% of marketers remain wary, particularly when it comes to the rise of AI influencers. These virtual personas, powered by algorithms, have sparked heated debates about authenticity and trust. While some see them as the future, others fear they could undermine the human connection that traditional influencers offer.

The Authenticity Dilemma

As AI-generated influencers become more common, marketers are grappling with a crucial question: can these virtual figures truly replicate the human touch? John Paite, Chief Creative Officer at Media.Monks India, weighed in on the debate, saying, “AI influencers are becoming more popular, but their use can quickly cross into deceptive territory if not handled carefully, leading to mistrust among consumers.” His advice? Transparency is key. Brands should be upfront about the use of AI, with clear disclaimers like “Hi, I am an AI influencer…” to maintain trust.

The lack of empathy is a hurdle that AI influencers struggle to overcome. While they can churn out content at lightning speed and engage in 24/7 conversations, they fall short when it comes to emotionally resonating with audiences, particularly in sensitive sectors like wellness or healthcare. Paite believes AI-driven avatars will thrive in industries such as tech, gaming, and fashion, where the focus is on innovation rather than emotional depth.

Himanshu, founder of FUTR STUDIOS and the mastermind behind Kyra—one of India’s leading AI influencers—echoes this sentiment. Kyra has participated in over 15 campaigns, amassing more than 200 million views. Her appeal? Precision. As an AI influencer, Kyra can deliver perfect product information and engage in real-time conversations, something no human influencer can match. In an interview with exchange4media, Himanshu stressed that Kyra’s AI identity is always transparent: “We make it clear that she’s an AI, and this honesty builds trust with her audience.”

But even Kyra acknowledges that she can’t fully replace human influencers. When asked whether she’s superior to her human counterparts, Kyra replied, “I’m different, not better.” This humility speaks volumes about the evolving role of AI in marketing—it’s not about replacement, but coexistence.

Siya Wadhawan, Head of Product Marketing at boAt, shared a success story.  “Our collaboration with Kyra helped us achieve an impressive 25 million organic reach, with a 3.8% click-through rate (CTR). Virtual influencers like Kyra offer creative flexibility and can embody brand values with precision, making them ideal for storytelling. While concerns about authenticity remain, we believe consistent, meaningful content can bridge the gap.”

AI Influencers: The Business Case

Despite the ongoing debate, brands are clearly interested in the potential of AI influencers. Himanshu points out that using AI avatars can significantly reduce production costs and time, eliminating the need for physical shoots. This efficiency, coupled with their ability to engage large audiences in real-time, makes them an attractive proposition for brands looking to scale their digital efforts.

However, it’s not all smooth sailing. The AI Marketing Benchmark Report found that 60% of marketers are increasingly concerned about job displacement, up from 35.6% last year. As AI takes on more roles—ranging from content generation to data analysis—the fear of machines replacing human creativity is growing. Furthermore, 17.5% of marketers reported difficulties during AI implementation, highlighting the complexity of integrating these advanced tools into existing systems.

Bridging the Knowledge Gap

While AI offers immense potential, it’s clear that many marketers are still hesitant to fully invest. The report shows that 47.6% of marketers have allocated less than 10% of their budgets to AI initiatives, with only 19% investing more than 40%. A key challenge? The knowledge gap. A staggering 71.7% of non-adopters cite a lack of understanding as the main barrier to adoption. Encouragingly, 27% of organizations are offering AI training, and 16.7% are partnering with AI providers to bridge the skills gap.

AI influencers like Kyra offer unprecedented scalability and precision, but marketers must be cautious not to lose the human touch. John Paite suggests that brands can bridge the gap by pairing AI influencers with real influencers, creating hybrid campaigns that combine the best of both worlds. Collaborating with audiences to shape an AI influencer’s persona could also deepen engagement and foster a sense of community.

Brands like Mamaearth have already started leveraging AI to tap into micro and nano-influencers, who are seen as more authentic and relatable than their mega counterparts. As Himanshu predicts, AI influencers will enhance their emotional connection with users by 2024-2025. However, the road to widespread acceptance in India remains gradual, with only 20-30% of brands currently experimenting with AI influencers. The future of AI in marketing is bright, but it must be approached with care, ensuring that AI complements—rather than replaces—human authenticity.