When AI Has a Beautiful Face: The Business Value of Virtual Digital Human Shells
Xiaoice, Du Xiaoxiao, Luo Tianyi, Xing Tong, Liu Yexi… have you heard these names? They are virtual digital humans, native residents of the digital world. In this era where AI technology is advancing at breakneck speed, we seem to have gotten used to talking about algorithms, efficiency, and cost reduction. But today I want to talk about something more emotional—when AI is given a human shell, what kind of business value can this “beautiful appearance” actually bring?
From Technical Definition to Business Essence
First, we need to clarify what a virtual digital human is. From a technical perspective, a virtual digital human is a virtual persona created through technologies such as computer graphics, motion capture, and deep learning, with human‑like characteristics in appearance, behavior, and thought. Depending on how they are driven, they can be divided into two types:
Human‑in‑the‑loop driven: Using motion capture and facial capture technologies, a real person “wears a digital shell” to enter the virtual world. This type of digital human is vivid, but limited by the energy and capability of the human operator, making high concurrency and large‑scale production difficult.
AI‑driven: Completely created, driven, and content‑generated by AI technologies, with perception and expression capabilities for interaction. With the emergence of large models such as ChatGPT, more and more vendors are equipping digital humans with “intelligent brains,” allowing them to truly become independent digital beings.
In terms of application scenarios, virtual digital humans can be roughly divided into three categories: service, performance, and identity. Service digital humans are mainly used to provide various professional services, such as virtual hosts, virtual customer service agents, and virtual teachers. Performance digital humans are active in the entertainment domain, such as the virtual idols Luo Tianyi and AYAYI that we are familiar with. Identity digital humans are our digital avatars in the metaverse.
However, in this article I want to focus on AI‑driven service‑oriented virtual digital humans. What I care about is not their technical specs, but how this “human‑like shell” influences user psychology and behavior, and thus creates business value for enterprises.
The Value of Digital Humans in the User Funnel
In an era where traffic is becoming more and more expensive, every company is thinking about how to mine its own gold from traffic. We usually use the user funnel model to describe the conversion path: from traffic to new users, from new users to returning users, and finally to loyal brand advocates. This process can be broken down into three key stages: acquisition, conversion, and retention.
So what role can virtual digital humans play in this funnel?
Acquisition: Attractive in Theory, Limited in Reality
When it comes to acquisition through virtual digital humans, many people immediately think of 24/7 live‑streaming virtual hosts. Indeed, a full AI‑driven virtual host solution is not very expensive—around 18,000 RMB—and only requires one computer to achieve “sun‑never‑sets” live streaming. But in reality, there are often only a dozen people in the virtual live room. Although extending the streaming time can increase total viewers, the effect is far from ideal.
Where is the problem? I think there are two main reasons:
Platform ecosystem constraints: Short‑video platforms such as Douyin need diverse, personalized, and high‑quality content, whereas virtual hosts represent standardization and assembly‑line production. Platform algorithms are more inclined to recommend warm, emotional human content, so virtual hosts struggle to gain an advantage in the content ecosystem.
User‑experience bottlenecks: Although virtual hosts can stay online 24/7, their interactive capabilities are still limited. It is difficult for them to interact deeply and build emotional connections with viewers like real hosts do. Viewers tend to stay only briefly in such rooms, making effective conversion hard to achieve.
On traditional e‑commerce platforms such as Taobao, application scenarios for virtual hosts are also relatively limited. Most of the time they act as “video customer service” during late‑night hours, providing basic product display and simple Q&A.
Conversion and Retention: Where the Shell’s True Value Lies
If virtual digital humans are constrained in acquisition, where does their value lie? In my view, their real value emerges in private‑traffic operations—that is, in the conversion and retention stages.
As the era of traffic dividends comes to an end, private traffic has become an important means for companies to reduce acquisition costs and increase user loyalty. Many companies have built their own user communities, but the results vary greatly. Many communities gradually become lifeless: only the operations team is pushing messages one‑way, and users lack engagement and a sense of belonging.
The core problem is that once private traffic scales up, relying solely on human staff makes it difficult to build deep emotional connections with every user. Virtual digital humans happen to address this pain point—they can appear in human form and interact with users around the clock, building real trust relationships.
Trust and Emotional Connection: The Ultimate Value of the Shell
Why is the humanized appearance of virtual digital humans so important? Underneath it is actually the working of human instinctive psychology.
Familiarity Breeds Closeness
We are naturally more willing to communicate with our own kind. When a virtual digital human has a human appearance—especially an attractive face and a warm smile—it creates a sense of familiarity and closeness. This familiarity lowers the user’s psychological defenses and makes them more willing to accept the services provided by the virtual digital human.
Authenticity Builds Trust
A human‑like appearance also conveys a sense of authenticity, making the digital human seem more sincere and trustworthy. In business interactions, trust is the foundation of long‑term relationships. When a virtual digital human, in human form, delivers personalized professional services, users are more likely to feel trust and thus be willing to accept the company’s products and services.
Emotional Bonds Increase Loyalty
When virtual digital humans possess relatively high IQ and EQ—able to understand user needs and emotions and deliver services that match expectations—they can build emotional bonds with users. Such emotional connections satisfy users’ social needs and create a certain emotional dependence, which ultimately translates into brand loyalty.
The Ultimate Manifestation of Business Value
So what business value can the shell of a virtual digital human actually bring? In my opinion, it can be seen mainly in the following aspects:
Higher conversion efficiency: When users develop trust and emotional dependence on a virtual digital human, they are more likely to accept the company’s products and services, thereby increasing sales conversion rates.
Lower operating costs: Virtual digital humans can interact with users 24/7 without needing rest or vacations, significantly reducing labor costs.
Better user experience: Virtual digital humans can deliver personalized services that cater to different user needs, resulting in a better overall user experience.
Stronger brand image: A warm, emotionally resonant virtual digital human can serve as a brand ambassador, enhancing the brand’s friendliness and recognizability.
Conclusion
In this technology‑driven era, we often overlook human needs. The shell of a virtual digital human is not just a beautiful appearance—it is a bridge that connects AI technology with human emotions. When AI is given a human shell, it is no longer a cold machine, but a digital companion with warmth and feelings.