The rise of the metaverse and virtual reality is opening new opportunities for advertising, but a study from Northeastern University warns brands of the risks associated with AI-powered influencers.
The research finds that if a product fails to meet consumer expectations, brands suffer greater reputational damage when virtual influencers are involved in its promotion compared to human influencers. This highlights the need for companies to exercise strict oversight of virtual influencers in the metaverse.
Virtual rivals
Human influencers—such as celebrities with vast followings—are well-known for their role in online advertising. Now, AI-generated personalities are taking on a similar role in virtual spaces, where users interact via avatars. Some virtual influencers, like Lil Miquela, have gained mainstream recognition, representing major brands such as BMW and Calvin Klein.
The study examines consumer perceptions of blame when a product does not perform as advertised. Findings reveal that consumers hold human influencers more accountable for misleading claims due to their perceived agency and experience. In contrast, consumers assume that virtual influencers are fully controlled by brands, making companies directly responsible for any misinformation.
For example, if an influencer falsely claims that a product comes with a 10-year warranty, a brand could argue that a human influencer simply made an error. However, if a virtual influencer makes the same claim, consumers are more likely to believe the false information was intentionally programmed, thereby placing full blame on the brand.
Maintaining control
The study underscores the need for brands to maintain control over the messaging of virtual influencers to avoid reputational harm. “Organizations must recognize their accountability for the actions of AI-powered virtual influencers, as these directly affect brand trust,” the researchers state.
They recommend that companies monitor virtual influencers closely and implement crisis communication strategies to manage potential fallout. In the long run, legal and regulatory frameworks may be necessary to provide oversight of virtual influencer marketing.
