Shopping: AI influencers are shaping Gen Z’s shopping habits

Why it is the topic trending:

• Growing Acceptance of AI: There is an increasing acceptance and integration of artificial intelligence in various aspects of life, including entertainment and social media. The emergence of sophisticated AI-generated personas that can interact and promote products naturally leads to discussions about their influence.

• Shifting Values for Gen Z: The article highlights a potential shift in what Gen Z values in influencers. The survey suggests they might prioritize reach and follower count over traditional notions of authenticity, which is a noteworthy development in influencer marketing and is generating considerable discussion among marketers and social media analysts.

• Concerns for Real-Life Creators: The rise of AI influencers and their potential to secure brand deals raises concerns among human content creators about competition and the future of their profession. This naturally makes the topic a point of discussion within the creator economy.

• Technological Advancement: The advancements in AI technology that allow for the creation of increasingly realistic and engaging virtual influencers are a key driver of this trend. As the technology becomes more accessible (as indicated by Meta's new tools), the trend is likely to gain further momentum and attract more attention.

• Implications for Marketing Strategies: Brands are exploring new and potentially cost-effective ways to reach their target audiences. AI influencers present a novel option, leading to discussions and research into their effectiveness and impact on consumer behavior.

Overview:

The article discusses the emerging trend of AI-generated influencers and their growing influence on Gen Z consumers' purchasing decisions. A recent survey indicates that a significant portion of Gen Z is making buying choices based on recommendations from these virtual personas, even valuing their follower counts more than their perceived authenticity. This development has implications for brands, real-life creators, and the future of influencer marketing, as platforms like Meta are now enabling users to create their own AI characters.

Detailed Findings:

• One in three Gen Z consumers make purchasing decisions based on recommendations from AI-generated influencers. This highlights the significant impact virtual personas are already having.

• The trend is particularly strong among college-age consumers, with nearly half (47%) of 19- to 21-year-olds following AI influencers. This suggests that this age group is particularly receptive to this form of influence.

• Young men (47%) are more likely to follow AI influencers compared to young women (less than 40%). This reveals a gendered aspect to the adoption of virtual influencers.

• Nearly half (46%) of Gen Zers say they are more likely to trust a brand that works with an AI influencer. This challenges the traditional notion that authenticity is paramount for influencer credibility, at least for this demographic.

• Only 35% of Gen Z respondents valued an influencer's authenticity, compared to about half of millennials, Gen Xers, and baby boomers. This stark contrast emphasizes a generational difference in what is valued in an influencer.

• Almost half (47%) of Gen Z said the number of followers matters more than how authentic the influencer feels. This indicates a preference for popularity and reach over genuine connection with the influencer's personality.

• Almost half (49%) of influencers admit they are worried about the rise of AI influencers. This underscores the potential threat that virtual creators pose to their human counterparts in terms of competition for brand endorsements.

• High-profile virtual creators like Lil Miquela (2.4 million followers) are already securing brand deals with major companies and reportedly earning substantial income, demonstrating the commercial viability of AI influencers.

• Platforms like Meta are launching tools to allow users to create their own AI characters on Instagram and Facebook, democratizing the creation of virtual influencers and potentially accelerating this trend.

Key success factors of product (trend):

• High Follower Count: For Gen Z, a significant number of followers signals influence and popularity, often outweighing the perceived authenticity of the influencer.

• Brand Deals with Recognizable Companies: Collaborations with established and well-known brands lend credibility and visibility to AI influencers.

• Technological Sophistication: The ability of AI to create realistic and engaging virtual personas that can interact on social media is crucial for attracting and retaining followers.

• Novelty and Uniqueness: The novelty of AI influencers can capture the attention of a tech-savvy generation and offer a different form of engagement compared to traditional human influencers.

• Accessibility of Creation Tools: Platforms providing user-friendly tools to create AI characters lower the barrier to entry for individuals and brands looking to leverage virtual influencers.

Key Takeaway:

A significant portion of Gen Z consumers are increasingly influenced by AI-generated influencers in their purchasing decisions, prioritizing follower count over authenticity, which presents both opportunities and challenges for brands and real-life content creators.

Main Trend:

The main trend is the rising influence of AI-generated virtual influencers on Gen Z consumers' shopping habits.

Description of the trend (please name it):

Trend Name: The Rise of Virtual Influence

Description: This trend involves the growing popularity and impact of computer-generated avatars or personas, known as AI influencers, on social media platforms. These virtual entities are accumulating significant followings, particularly among Gen Z, and are increasingly being used by brands for marketing and promotional activities, often prioritized for their reach over their perceived authenticity.

What is consumer motivation:

• Curiosity and Novelty: Gen Z, being digital natives, may be drawn to the novelty and technological sophistication of AI influencers. They might be curious about the capabilities of these virtual beings and find them engaging in a unique way.

• Entertainment Value: AI influencers often have distinct aesthetics and narratives, providing entertainment and escapism for their followers.

• Sense of Trendiness and Being "In the Know": Following AI influencers might be seen as being part of a cutting-edge trend, which appeals to a generation often at the forefront of digital culture.

• Potential for Online Income Generation: As mentioned in the article, younger generations are "hungry for opportunities to make money online," and creating or engaging with AI influencers might be perceived as a pathway to this.

What is driving trend:

• Advancements in AI and Graphics Technology: The ability to create increasingly realistic and engaging virtual avatars is a primary driver. AI can now generate content, interact with followers, and even adapt its persona over time.

• Platform Support: Social media platforms like Meta are actively developing and launching tools that enable the creation of AI characters, signaling their recognition and support for this trend.

• Brand Adoption: As brands witness the reach and engagement of AI influencers, they are increasingly willing to invest in collaborations, further fueling the trend.

• Gen Z's Digital Native Nature: Having grown up in a digital world, Gen Z is generally more comfortable with virtual interactions and less tied to traditional notions of "authenticity" in the same way older generations might be.

• Creator Economy Evolution: The creator economy is constantly evolving, and AI influencers represent a new frontier, attracting both creators looking to innovate and audiences interested in new forms of digital content.

What is motivation beyond the trend:

• Desire for Connection and Community: While AI influencers aren't "real," they can still foster a sense of connection and community among their followers who share similar interests.

• Seeking Information and Recommendations: Regardless of whether an influencer is human or AI, consumers often follow them to discover new products, trends, and recommendations.

• Aspiring to Online Entrepreneurship: The article suggests a broader motivation among younger generations to earn money online. Engaging with or creating AI influencers could be seen as a way to tap into this desire.

• Enjoyment of Digital Storytelling and Aesthetics: AI influencers often have carefully crafted visual styles and narratives, which can be aesthetically pleasing and engaging for followers.

Description of consumers article is referring to:

The article primarily refers to Gen Z consumers, specifically those aged 12 to 27, with a particular focus on college-age individuals (19-21 years old).

• Age: 12-27 years old, with a concentration on 19-21 year olds.

• Gender: The study indicates a higher tendency for young men to follow AI influencers compared to young women in the college-age group.

• Income: The article doesn't provide specific income details, but it implies this group is digitally savvy and potentially looking for ways to engage with online content and even generate income through digital platforms.

• Lifestyle: This demographic is likely highly active on social media platforms like Instagram and TikTok, where AI influencers have a strong presence. They are likely early adopters of new digital trends and technologies.

• Category Shopping Preferences: The article implies that they are open to purchasing a variety of products based on AI influencer recommendations, suggesting they are not necessarily limited to specific categories. The examples of Lil Miquela working with fashion and automotive brands support this.

• Shopping Frequency: The article doesn't explicitly state their shopping frequency, but their willingness to make purchase decisions based on AI recommendations suggests they are engaged in online shopping to some extent.

• General Shopping Preferences: They appear to value popularity and reach (follower count) as indicators of influence and potentially product desirability over the perceived authenticity of the influencer. They are likely influenced by trends and what is considered popular within their social circles.

• Shopping Motivations: Beyond potentially finding good products, their motivations seem to include being part of trends and possibly seeking online income opportunities related to the digital and influencer space.

Conclusions:

The rise of AI influencers represents a significant shift in the landscape of influencer marketing, particularly concerning Gen Z consumers. Their apparent prioritization of follower count over authenticity challenges traditional marketing beliefs and presents new opportunities and challenges for brands and human content creators alike. The increasing accessibility of AI creation tools suggests that this trend is likely to continue and evolve.

Implications for brands:

• New Marketing Channel: AI influencers offer a novel way to reach Gen Z audiences, potentially providing a cost-effective and highly controlled marketing channel.

• Brand Persona Control: Brands can have complete control over the image, messaging, and behavior of their AI influencers, ensuring brand consistency.

• Data-Driven Insights: AI can potentially provide more granular data on audience engagement and the effectiveness of campaigns.

• Need for Strategic Integration: Brands need to carefully consider how AI influencers fit into their overall marketing strategy and how they can complement or interact with human influencers.

• Potential Backlash: While Gen Z seems receptive, brands should be mindful of potential negative reactions from consumers who might value human connection and authenticity.

Implication for society:

• Blurring Lines Between Reality and Artificiality: The increasing prevalence of realistic AI personas could further blur the lines between the real and the virtual, potentially impacting social interactions and perceptions of authenticity.

• Impact on Human Creativity and Jobs: The rise of AI influencers could have economic consequences for human content creators and the creative industries.

• Ethical Considerations: Questions around transparency, disclosure of AI involvement, and the potential for manipulation need to be addressed as this trend grows.

• Evolution of Social Norms: Society may need to adapt to a new reality where virtual entities play a significant role in shaping opinions and behaviors.

Implications for consumers:

• New Forms of Entertainment and Influence: Consumers will have access to a new type of digital content creator that may offer unique entertainment and product recommendations.

• Potential for Deception: Consumers need to be aware that they are interacting with AI and not human beings, to avoid potential manipulation or unrealistic expectations.

• Shifting Perceptions of Authenticity: Gen Z's apparent acceptance of AI influencers might lead to a broader societal shift in how authenticity is defined and valued in the digital space.

• Empowerment through AI Creation: With platforms offering AI creation tools, consumers can also become creators of their own virtual personas.

Implication for Future:

• Growth of the Virtual Influencer Market: The market for AI influencers and related technologies is likely to expand significantly.

• Integration with Metaverse and Virtual Worlds: AI influencers could play a key role in virtual environments and the metaverse.

• Advancements in AI Personalization: Future AI influencers could become even more personalized and tailored to individual user preferences.

• Hybrid Influencer Models: We might see more collaborations between human and AI influencers, leveraging the strengths of both.

• Sophisticated AI-Driven Marketing Strategies: Brands will likely develop increasingly sophisticated strategies utilizing AI for marketing, potentially going beyond just virtual influencers.

Consumer Trend (name, detailed description):

Consumer Trend Name: Value Shift in Influencer Engagement

Detailed Description: This trend describes a change in what younger consumers, particularly Gen Z, prioritize when engaging with influencers. Traditionally, authenticity, genuine connection, and relatable personal experiences were highly valued. However, the rise of AI influencers suggests a shift towards valuing reach, follower count, and potentially entertainment value over these traditional aspects of authenticity. Gen Z appears more willing to accept and be influenced by virtual personas, indicating a different set of criteria for what makes an influencer credible or worth following.

Consumer Sub Trend (name, detailed description):

Consumer Sub Trend Name: Pragmatic Acceptance of the Artificial

Detailed Description: This sub-trend reflects a growing acceptance and even preference for artificial or digital entities among Gen Z in certain contexts. Having grown up with advanced technology and digital interactions, they may be more pragmatic about the nature of the connection or source of information, as long as it provides value, entertainment, or aligns with their desire to stay informed about trends. The "reality" of the influencer might be less important than their ability to provide desired content or influence purchasing decisions.

Big Social Trend (name, detailed description):

Big Social Trend Name: The Blurring of Digital and Physical Realities

Detailed Description: The increasing influence of AI-generated entities contributes to the broader social trend of the lines between the digital and physical worlds becoming increasingly blurred. As virtual personas become more sophisticated and integrated into social media and even potentially real-world interactions (through augmented reality, for example), our perception of what is "real" and what is "artificial" becomes more fluid. This has implications for social interactions, personal identity, and our understanding of community.

Worldwide Social Trend (name, detailed description):

Worldwide Social Trend Name: Digital Native Influence on Consumerism

Detailed Description: This trend highlights the significant and growing influence of digital natives, particularly Gen Z, on global consumer behavior. Having grown up with the internet and social media, their values, preferences, and ways of interacting with brands are shaping marketing strategies and product development worldwide. Their openness to AI influencers, as seen in the article, is a key example of how their unique digital-native perspective is impacting the future of consumerism on a global scale.

Social Drive (name, detailed description):

Social Drive Name: The Pursuit of Online Engagement and Opportunity

Detailed Description: This social drive encompasses the desire of younger generations to actively engage in the online world and to leverage digital platforms for various opportunities, including entertainment, information, social connection, and even income generation. Their willingness to follow and be influenced by AI personas, as well as the reported desire to create their own, reflects this drive to participate and potentially benefit from the evolving digital landscape.

Learnings for brands to use in 2025:

• Explore the Potential of AI Influencers: Brands should seriously consider experimenting with AI influencers as part of their marketing mix, especially when targeting Gen Z audiences.

• Understand Gen Z's Value System: Recognize that follower count and trendiness might be more effective metrics for this demographic than traditional measures of authenticity when it comes to influencer marketing.

• Consider Hybrid Strategies: Explore collaborations between AI and human influencers to leverage the strengths of both – the control and scalability of AI with the relatability and emotional connection of humans.

• Invest in AI Creation Tools: If targeting a broad audience, brands might consider utilizing the new AI character creation tools on platforms like Meta to build their own virtual brand ambassadors.

• Monitor Ethical Considerations: Stay informed and proactive about ethical concerns surrounding AI influencers, such as transparency and disclosure, to maintain consumer trust.

Strategy Recommendations for brands to follow in 2025:

• Pilot AI Influencer Campaigns: Initiate small-scale campaigns with existing AI influencers or by creating their own to test the effectiveness and gather data on engagement and ROI.

• Develop Clear Disclosure Policies: If using AI influencers, ensure clear and prominent disclosure to maintain transparency with consumers.

• Focus on Entertainment and Trendsetting: Leverage AI influencers for creating visually appealing, entertaining content that aligns with current trends to capture Gen Z's attention.

• Track Follower Growth and Engagement: Prioritize follower count and engagement metrics (likes, shares, comments) when evaluating the success of AI influencer campaigns targeting Gen Z.

• Integrate with Broader Digital Strategy: Ensure that AI influencer strategies are aligned with the brand's overall digital marketing efforts and complement other online activities.

Final sentence (key concept) describing main trend from article (which is a summary of all trends specified), and what brands & companies should do in 2025 to benefit from trend and how to do it.

The core trend of Gen Z's growing receptiveness to AI influencers, prioritizing reach over traditional authenticity, necessitates that brands and companies in 2025 strategically explore and pilot the use of virtual personas in their marketing efforts, focusing on creating engaging, visually driven content and carefully monitoring performance metrics like follower growth and engagement to effectively connect with this influential demographic.

Final Note:

• Core Trend:

  • Name: The Rise of AI-Driven Influence on Gen Z

  • Detailed Description: Gen Z consumers are increasingly influenced by AI-generated influencers in their purchasing decisions, showing a preference for high follower counts and trendiness over traditional notions of authenticity and personal connection.

• Core Strategy:

  • Name: Strategic Integration of Virtual Influencers

  • Detailed Description: Brands should strategically explore and integrate AI influencers into their marketing strategies, particularly for reaching Gen Z, by piloting campaigns, developing disclosure policies, and focusing on creating engaging, trend-relevant content.

• Core Industry Trend:

  • Name: Evolution of Influencer Marketing

  • Detailed Description: The influencer marketing industry is evolving to include AI-generated personas as a viable and potentially significant category, requiring brands and marketers to adapt their strategies and evaluation metrics.

• Core Consumer Motivation:

  • Name: Engagement and Trend Participation in the Digital Realm

  • Detailed Description: Gen Z's motivation for engaging with AI influencers stems from their desire for online engagement, staying up-to-date with trends, and potentially exploring new avenues for online income and participation in the digital landscape.

Final Conclusion:

The emergence and increasing acceptance of AI influencers by Gen Z signal a fundamental shift in the dynamics of influencer marketing. Brands that proactively understand and strategically leverage this trend in 2025 will likely gain a competitive advantage in connecting with this influential demographic.

Core Trend Detailed:

The core trend is the significant and growing impact of AI-generated virtual influencers on the purchasing decisions of Gen Z consumers. This trend is characterized by a departure from traditional values placed on the authenticity and personal connection with human influencers. Instead, Gen Z demonstrates a higher inclination to be influenced by virtual personas with large follower counts and a strong presence in online trends. This suggests a shift in what constitutes influence for this generation, potentially driven by their digital native background and a different perspective on the nature of online relationships and endorsements. The increasing sophistication of AI technology, making virtual influencers more realistic and engaging, coupled with the ease of creating such personas through new platform tools, further fuels this trend.

Key Characteristics of the Core trend:

• Gen Z Focus: The trend is most prominent among Gen Z consumers (ages 12-27), with college-age individuals showing particularly high engagement with AI influencers.

• Follower Count Priority: A key characteristic is the emphasis placed on the number of followers an AI influencer has, often outweighing the perceived authenticity of the persona.

• Brand Trust Association: A significant portion of Gen Z reports being more likely to trust brands that partner with AI influencers, indicating a potential marketing advantage for brands adopting this strategy.

• Generational Divide: There is a clear difference in values, with older generations still prioritizing authenticity in influencers, while Gen Z's focus lies more on reach and popularity.

• Technological Enablement: The trend is heavily reliant on advancements in AI and graphics technology that allow for the creation of realistic and engaging virtual avatars.

Market and Cultural Signals Supporting the Trend:

• Survey Data: The Whop survey, which indicates that one in three Gen Z consumers make purchasing decisions based on AI influencer recommendations, provides strong evidence for the trend's significance.

• Meta's Investment: The launch of AI character creation tools by Meta signals that major social media platforms recognize and are investing in the growth of virtual influencers.

• Success of Early AI Influencers: The high follower counts and brand deals secured by pioneers like Lil Miquela demonstrate the commercial viability and appeal of AI influencers.

• Creator Economy Concerns: The worry among human influencers about competition from AI indicates that the trend is already having a tangible impact on the creator economy.

• Gen Z's Digital Native Behavior: Growing up with digital technology, Gen Z is generally more comfortable with and accepting of virtual entities in various aspects of their lives.

How the Trend Is Changing Consumer Behavior:

• Shifting Trust Metrics: Gen Z's purchasing decisions are increasingly being influenced by follower counts and apparent popularity rather than solely on the perceived trustworthiness or relatability of a human influencer.

• Openness to Non-Human Endorsements: Consumers in this demographic are demonstrating a willingness to accept product recommendations from virtual entities, challenging traditional notions of influencer credibility.

• Potential for Faster Trend Adoption: AI influencers, being highly controllable, could potentially accelerate the adoption of certain trends and products among their followers.

• New Forms of Brand Engagement: Brands utilizing AI influencers can create unique and potentially more immersive or interactive experiences for consumers.

• Demand for Transparency: While valuing reach, consumers will likely still expect transparency regarding the artificial nature of these influencers to avoid feeling misled.

Implications Across the Ecosystem:

• For Brands and CPGs:

  • Opportunity to reach Gen Z through a novel and potentially efficient channel.

  • Greater control over brand messaging and influencer behavior.

  • Need to navigate ethical considerations and potential consumer backlash.

  • Possibility of cost savings compared to high-profile human influencers.

• For Retailers:

  • Potential for increased sales driven by AI influencer recommendations.

  • Need to adapt marketing strategies to incorporate virtual endorsements.

  • Opportunity to partner with brands utilizing AI influencers for promotions.

• For Consumers:

  • Access to new forms of digital entertainment and product discovery.

  • Potential for influence driven by metrics other than genuine personal connection.

  • Importance of critical evaluation of endorsements from non-human sources.

Strategic Forecast:

• The number and influence of AI influencers will continue to grow, especially among younger demographics.

• More brands will experiment with and integrate AI influencers into their marketing strategies.

• Technology for creating and managing AI influencers will become more sophisticated and accessible.

• Ethical guidelines and regulations regarding the use of AI influencers may emerge to address concerns about transparency and potential deception.

• Hybrid models involving both human and AI influencers will likely become more common.

Final Thought (summary):

The increasing influence of AI influencers on Gen Z's shopping habits signifies a fundamental shift in consumer engagement, urging brands to strategically explore this evolving landscape while remaining mindful of ethical implications and the potential impact on human creativity.

Source: https://www.fastcompany.com/91340504/ai-influencers-are-shaping-gen-zs-shopping-habits