The Rise of Digital Humans and Deepfakes in China

In recent years, we witnessed a curious phenomenon—digital humans and deepfakes—that appeared at the intersection of artificial intelligence (AI) and media technology. China, known for its technological advances, was one of the first countries to adopt and nurture the development and deployment of these technologies.

In this article, I will demonstrate the use of AI-driven digital humans and deepfakes in various industries and media channels. In the example of China, we can see what potential these technologies can bring and what ethical considerations they may raise.

First of all, let’s find out what digital humans are. They are images and videos of digitally created people, so-called AI avatars, that are able to communicate with users and viewers in a very human-like way—in real-time. They are created using a number of the latest AI technologies, such as computer vision, machine learning, and natural language processing.

Computer vision is used to capture images and videos of real people on which the AI avatars will be based. Machine learning algorithms train a model to generate realistic images and videos of the person.

For some algorithms, only a few photos or a short video of a real person is enough to create a convincing AI clone—a digital persona that would move and interact in a realistic way. Natural language processing algorithms and speech-generating tools enable the digital avatars to communicate like real people.

Combined, these tools produce an exceptionally realistic picture that often can be mistaken for a real person.

AI Avatar Generators

Answering the growing demand for AI avatars, Chinese companies produce more and more affordable AI generative tools that can be used for digitizing real humans as well as creating unique digital personas.

Meishe, a solution provider that focuses on independent development of video and audio SDK for mobile devices, has recently revealed three AI avatar generators: they allow creating an avatar using just a photo, video, or 3D model (GLB file) in a few minutes time—for a very reasonable price. This makes the technology more accessible both for businesses and individuals.

Concurrently, Qihoo 360, a leading Chinese tech company, is starting the internal testing of its platform for interaction with digital personas. Their solution is based on an advanced language model that allows cross-format generation.

Unlike Meishe, which bases its AI avatars on real humans, Quihoo 360 focuses on creating a wide range of personalities such as digital employees for marketing, operations, and programming purposes, as well as an interactive platform that includes classic Chinese literary figures.

Deepfake Technology

Another Chinese Tech giant, Tencent, put its effort into democratizing deepfake technologies. The company recently presented a platform that allows the creation of a deepfake digital human for an astonishingly affordable price of $145.

This new service allows anyone to make a high-definition digital human based on just three minutes of live-action video of a real person and 100 sentences of voice material.

Digital Humans in Business

In China, companies have already started to employ virtual humans for various tasks. “Hiring” a virtual person would cost approximately $14,000 a year, which can be considered pretty cost-efficient. AI-powered digital humans can help streamline operations and also open up new possibilities for engaging with customers and stakeholders 24/7.

Digitized humans can answer questions, interact on a live stream, and even sing. This means that their use is not limited to just chatbots, automated technical support, and customer support—even though it’s becoming very common in many business areas such as financial services and tourism. AI avatars can also act as social media influencers and even become broadcasters on the state media.

According to CNBC, the use of virtual humans in various business areas is expected to grow by 50% annually through 2025—thanks to the rapid development of the technology, its increasing availability, and new applications in various fields.

AI News Anchors

Recently, Chinese media has introduced AI news anchors who would engage with viewers and answer questions during important social events, particularly, the “Two Sessions”—the Chinese government's annual plenary sessions held every March in Beijing.

These digital news anchors are able to provide real-time responses and engage with the audience. It is evident that the Chinese government views AI avatars as a significant asset that can help advance and propagate Chinese culture and values, investing in the development of the technology.

Influencer Live Streaming

Deepfakes, which are the AI avatars of real people, have become a significant part of Chinese e-commerce, particularly among livestream influencers. Live streaming has transformed into a billion-dollar industry in just a few years and is expected to grow by at least 20% a year in the future.

Deepfakes take on the appearances and voices of popular influencers and seamlessly integrate into livestreams, taking content creation to a whole new level.

The integration of deepfake technology into live streams is a powerful tool that may redefine influencer marketing for e-commerce purposes. Chinese companies are actively integrating this technology to boost sales and brand reach, and it proved to be highly beneficial for the overall viewing experience and elevates the revenue from livestream shopping.

However, this advancement also raises ethical concerns. Many people see the need for regulations that would ensure transparency and protect consumers from fraud and misinformation.

AI Cloning

To create highly interactive and personalized AI-driven avatars, some Chinese tech companies have introduced AI cloning programs. The idea is to use volunteers and testers who will participate in recording their voices and appearances for the creation of more advanced and realistic AI personas based on that data.

For example, Microsoft spinoff Xiaoice has launched an AI clone program in China and Japan, seeking testers who can “lend” the AI avatars their personas, voices, and appearances in order to further refine and develop virtual beings. If the first testing group appears successful, the company is planning to expand the number of AI avatars to a hundred thousand.

Other China's tech giant, SenseTime, has unveiled new AI products based on this method. In addition to a chatbot, the company showcased a digital avatar creation platform and a pair of complementary 3D modeling tools, showcasing the integration of AI-driven virtual assistants into various applications and industries.

These initiatives can help integrate highly personalized AI clones and digital humans into our daily lives, however, this approach poses a risk of unauthorized data collection. Many AI tools over the world have already been accused of collecting users’ data without consent.

With the growing amount of video and audio content on the web, chances are high that anyone’s social media posts can become training material for an AI cloning tool.

Market Perspectives

China is one of the world leaders in AI development, amassing 19% of the total AI funding deals globally. It is also one of the major producers and consumers of the digital avatar industry.

According to a report by Emergen Research, the global digital human avatar market is expected to reach USD 527.58 billion by 2030, with the Asia-Pacific region accounting for the largest share.

The key factors that facilitate explosive growth of the AI avatar market in China are the following:

• Social media propelled demand for virtual content and surging metaverse trends. AI avatars help users engage in interactive virtual experiences and allow the creation of high-quality content 24/7.

• Dropping costs of developing and managing AI avatars make the technology largely accessible for Chinese businesses and individuals, helping it gain a broader audience.

• Government support and encouragement play an indispensable role in the country’s economy, amplifying the potential of Chinese AI solutions on the global market.