AI And Influencer Marketing: How Businesses Can Navigate The Future

Influencer marketing has evolved from a trend into a multimillion-dollar industry reshaping brand strategy worldwide. Now, with the rise of artificial intelligence (AI) making way for virtual and synthetic influencers, the landscape is undergoing significant transformation. For Generation Z, deeply connected to digital content, the demand for both human authenticity and virtual creativity is shaping a new era for influencer marketing. The question for brands is how to effectively integrate these human and AI-driven influences to capture this evolving audience.

Will Influencers Remain Human? 

Currently, human influencers still lead in both popularity and revenue, yet the landscape is quickly changing. A study by Twicsy.com shows human influencers out-earn, their AI counterparts by an average of 46 times. But virtual influencers are gaining ground fast, with KBV Research projecting the market could reach $37.8 billion by 2030, underscoring the key role this technology will play in the future of marketing.

Among the leading virtual influencers, Lil Miquela -a digital avatar with over 3 million Instagram followers- has collaborated with brands like Prada and Calvin Klein. Shudu Gram, the world’s first digital supermodel, regularly partners with luxury labels like Rihanna's Fenty Beauty. AI influencers provide a unique advantage to brands seeking greater control over messaging and image, reducing reputational risks that often accompany human influencers.

The Value Proposition of AI Influencers 

For brands, AI influencers are an efficient solution to the challenges of scale and consistency. Unlike humans, they operate 24/7, reach across platforms and languages, and engage with audiences at any time. HypeAuditor data reveals that virtual influencers can drive up to 3% more engagement on platforms like Instagram. This elevated engagement is largely attributed to AI’s capacity for hyper-personalized, scalable interactions.

Additionally, virtual influencers are cost-effective. According to Gartner, switching from human to AI influencers can lower campaign costs by up to 30%, eliminating fees, travel and logistics expenses. This makes AI a viable option for large companies requiring round-the-clock audience engagement.

The success of Lu do Magalu, a digital avatar created by the Brazilian retailer Magazine Luiza, demonstrates how virtual influencers can be integrated in a company’s marketing strategy. Beyond product promotion, Lu interacts directly with customers, providing personalized responses and recommendations –ideal for marketing teams aiming to maintain consistent branding and values.

The Challenges and Ethical Considerations of Virtual Influencers

Despite their advantages, AI influencers bring risks, chief among them being authenticity. According to Edelman, 58% of consumers rank authenticity as their top criterion when following influencers. While human influencers naturally forge emotional connections by sharing personal stories and experiences, AI avatars lack this emotional depth, which could limit long-term connection with followers.

Ethics and transparency also remain key challenges. Because they are completely controlled by algorithms, AI influencers cannot provide genuine recommendations or reviews of products or services. William Polson, of Australian Internet Advertising, notes that consumers may view them as overly engineered, potentially weakening brand trust. Regulatory scrutiny is increasing too, with some markets, like Spain, already mandating transparency in paid influencer campaigns. However, AI influencer regulation remains sparse, raising concerns about consumer manipulation.

Gen Z’s Growing Appetite for Virtual Influencers 

While ethical concerns linger, virtual influencers continue gaining traction, particularly among younger consumers. A Pew Research Center study found that 81% of Gen Z follow influencers on social media, and many are attracted by the idea of engaging with virtual figures. This trend reflects a shift in digital engagement priorities, with hyper-personalization often taking precedence over emotional connection.

Michael Tasner of No Joke Marketing points out that Gen Z seeks a sense of belonging through digital interactions. AI influencers, custom-designed for these preferences, fulfill this demand for personalized, dependable engagement. As technology progresses, the boundaries between human and digital influencers may continue to blur.

A Hybrid Future: Merging Human and Virtual Influencers 

As the virtual influencer market expands, full replacement of human influencers remains unlikely. Instead, a hybrid model may emerge, where brands combine both types to maximize authenticity and efficiency. Kellogg’s, for instance, recently modernized its iconic Tony the Tiger mascot to engage on social media in real-time, merging nostalgia with interactive appeal. Such strategies could pave the way for balanced influencer marketing, where AI augments, rather than replaces, human influence.

Narrative depth and creativity will remain critical. Terry Zelen of Zelen Communications warns that a digital avatar alone is insufficient; brands must build compelling backstories to resonate with audiences over time.

Where do We Go from Here? 

The future of influencer marketing hinges on brand’s ability to embrace technology without sacrificing the authenticity consumers crave. While AI influencers offer clear benefits in terms of efficiency and control, human influencers maintain an edge in credibility and emotional connection. Brands must therefore consider how to harmonize these two worlds to foster meaningful engagement.

The influencer marketing industry is entering a new era, where AI will not be seen as a threat, but as a complement to expand strategic and creative possibilities. With Gen Z driving this evolution, AI influencers are poised to play a larger role in tomorrow’s digital ecosystem. And as they enter the workforce with aspirations to become influencers, one can only wonder: will their dream job, as it exists today, still be around?