AI AVATARS ARE BECOMING MORE POPULAR IN MARKETING:A LOOK AT THE FUTURE OF BRAND ENGAGEMENT
- Prof. Dr. Sasa ARSOVSKI
- Oct 9
- 5 min read
Artificial intelligence, once confined to analytics and automating emails, has now evolved to become the face of your brand. This marks a bold and innovative era for marketing, with AI avatars at its forefront. The emergence of AI-generated personas is not just a trend, but a revolutionary shift in how brands talk to, interact with, and even entertain people. For example, hyperreal influencers and customer service avatars that speak every language are becoming more common. AI-generated images were big in 2022, and AI copywriting was big in 2023. Now, it looks like 2025 will be the year of AI avatars, ushering in a new and exciting chapter in marketing.
What are Avatars Made by AI?
AI avatars are computer-generated characters that look and act like real people and talk like them. They are created using advanced technologies such as machine learning and natural language processing. Some of them look like real people, while others are more stylized. These avatars can be pre-rendered or interactive, static or fully dynamic, and they are now used in many different marketing channels:
Brand Ambassadors
Customer Service Agents
Social Media Influencers
Virtual Store Guides
Event Hosts or MCs
Presenters of Education or Tutorial Content
And what happened? Surprisingly helpful, and in some cases even better than real people.
Why Marketers Are Using AI Avatars?
Always on, never tired: AI avatars, unlike their human counterparts, never experience fatigue. Companies like Sephora and LVMH are leveraging this unique trait, using digital assistants with avatars to provide skincare or fashion consultations to customers anytime, anywhere, including on the web, mobile devices, and even in virtual reality.
Multilingual, multicultural, and available on many platforms: In a world where people from all over the globe want content that is relevant to them, avatars can be easily translated into many languages without having to reshoot or retrain staff. AI tools like Synthesia, Hour One, and HeyGen can make videos with avatars that speak more than 40 languages in just a few minutes.
Costs of production are lower: It's expensive to make consistent branded content with real people as influencers or presenters. AI avatars significantly reduce costs, offering a cost-effective solution for your marketing needs. Statista's 2024 report says that companies that used AI avatars saved up to 65% on their yearly video production budgets compared to filming with real people.
Examples of Notable Things in Action
Lil Miquela (USA): Lil Miquela was one of the first viral virtual influencers. She has worked with Prada, Calvin Klein, and Samsung, showing that people can connect with fake characters.
The Digital Interior Designer from IKEA: IKEA recently introduced a virtual avatar that helps customers picture how furniture will look in their own home and gives them design tips. The result was a 3.5x increase in time spent on the app and a significant increase in accessory sales.
MetaHuman and NARS Cosmetics: NARS made very realistic makeup tutorials with avatars that mimic facial movements using Epic Games' MetaHuman platform. This let the brand reach different groups of people while still keeping tight control over its visual branding.
Gen Z and Alpha Are Making the Change
A McKinsey Digital Experience study from 2025 found that 62% of Gen Z respondents are open to getting brand recommendations or tutorials from AI personas, especially on sites like TikTok or Instagram Reels. People born after 2010, known as Gen Alpha, are even more immersed in digital-first experiences. They don't care whether they interact with a human or an AI, as long as the avatar is fun, relatable, and visually appealing.
What does this mean for Businesses?
The possibilities for AI avatars are enormous, whether you run an online store, a school, or a fashion house:
Large-scale personalized marketing
Better storytelling with a controlled narrative
Consistent branding across languages and channels
Experiences that make you feel like you're in a virtual space (Metaverse, VR, AR)
But it also comes with moral and creative duties. It's more important than ever to be open, set limits on digital identities, and protect users' trust. The use of AI avatars raises critical ethical questions about transparency, consent, and the potential for misuse. As marketers, we have a responsibility to navigate these issues thoughtfully and with respect for our audiences. We must ensure that our use of AI avatars is transparent, that users are aware they are interacting with an AI, and that their data and privacy are protected.
What's Next? (Hint: We're Working on Something Cool.)
We at Raffles Jakarta are looking forward to the future. Some of our upcoming marketing projects will use AI avatars that were made by and for people who work in the creative industry. These avatars will do more than just talk. They will walk, model, teach, and show ideas. For example, we are developing an AI avatar that can guide users through a virtual art gallery, providing information and insights along the way.
Stay tuned. Follow us on Instagram, LinkedIn, and TikTok to be the first to see what's coming.
Whether you're curious, skeptical, or already experimenting, one thing is clear:
AI avatars aren't coming, they're already here.
Prof. Dr. Sasa ARSOVSKI
AI & Robotics Department
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References
Consegic Business Intelligence. (2025, June 18). AI avatar market to surpass USD 208.61 billion by 2032. https://www.consegicbusinessintelligence.com/ai-avatar-market
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Epic Games. (n.d.). MetaHuman Creator documentation. https://dev.epicgames.com/documentation/en-us/metahuman/metahuman-creator
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