The Impact of Realism and AI Disclosure on Virtual Influencer Effectiveness: A Large Field Experiment
Abstract
Influencer marketing has become essential for brands, and the advent of generative AI drives the adoption of AI-generated virtual influencers. However, this innovative approach raises challenges around virtual influencer’s transparency and ethical usage. By conducting a large field experiment, we examine the impact of different levels of realism of virtual influencers and AI identity disclosure on over 1.8 million consumers. Results show that virtual influencers with higher levels of realism outperform those with less. Additionally, the study indicates that AI identity disclosure reduced consumer link clicks and 3s-video play by more than 20% and 6%, particularly with high-realism virtual influencers. The underlying mechanism reveals that the uncanny valley dehumanization effect is triggered when AI identities are disclosed, violating consumers’ expectations and causing negative feelings. Fortunately, the negative dehumanization effect can be mitigated by consumers’ prior experience with virtual influencers. Our findings provide actionable guidelines for brands and content creators to integrate AI agents into content generation and marketing strategies effectively.