A recent investigation reported that companies are using hyperrealistic AI avatars in promotional videos that appear to show ordinary users reviewing or recommending products. In several cases, the artificial nature of these personalities was not clearly disclosed to viewers. The report also said some creators involved in producing such content had been asked to sign non-disclosure agreements, limiting public discussion around how the campaigns were made.
The trend marks a shift in influencer marketing, where brands have traditionally relied on human creators to build relatability and trust. With generative AI tools now able to create realistic faces, voices, scripts and lifestyle content, marketers can produce influencer-style videos faster and with greater control over messaging. AI-generated creators can be made to fit specific campaign requirements, demographics and brand tones without the scheduling, negotiation or reputational risks that come with human talent.
Examples cited in the investigation include promotional material linked to the photo app Once and the home design app Maket. The report also referred to fashion brand Ashle, which reportedly removed AI-generated images after media queries. These cases have brought renewed attention to how synthetic people are being used in campaigns that resemble real customer testimonials or creator-led endorsements.
For brands, AI influencers offer clear operational advantages. They can lower production costs, reduce dependency on large creator budgets and allow companies to test several content formats quickly. They also give marketers more control over scripts, visual identity, language and campaign timing. In a crowded digital advertising market, where short-form video and creator-led content drive engagement, these factors are making virtual influencers more attractive.
However, the growing use of AI-generated personalities also raises concerns for advertisers, platforms and consumers. If viewers are not told that an influencer is artificial, they may assume the content reflects a real user experience. Consumer advocates have warned that this can blur the line between advertising, entertainment and synthetic storytelling, especially when AI avatars are used to simulate personal product use.
The regulatory picture remains uneven. The European Union’s Artificial Intelligence Act is expected to require labelling of certain AI-generated content from August, creating clearer disclosure expectations for brands operating in the region. In the UK, current advertising rules do not specifically require brands to disclose that a person shown in an ad is AI-generated, unless the content is considered misleading. This gap has added pressure on regulators and platforms to define clearer standards.
The issue is also relevant for India’s marketing ecosystem, where influencer campaigns have grown rapidly across beauty, fashion, technology, fintech, food and lifestyle categories. Indian guidelines already require influencers to disclose paid partnerships, but AI-generated influencers could introduce new grey areas around identity, consent, transparency and accountability.
For agencies and brand teams, the rise of AI influencers may create both opportunity and risk. Used with clear disclosure, synthetic creators could help brands experiment with multilingual content, regional campaigns and always-on engagement. Used without transparency, they could damage consumer trust and invite scrutiny from regulators.
The development reflects a wider change in marketing, where generative AI is moving from backend content support to consumer-facing brand communication. As AI avatars become more realistic, audiences may find it harder to distinguish between human and synthetic endorsements.
For now, the key challenge for brands will be to balance efficiency with honesty. Clear labelling, responsible creative practices and human oversight are likely to determine whether AI influencers become a trusted marketing format or a flashpoint in modern digital advertising today globally.