AI-generated videos are already displacing actors and livestreamers across China's entertainment industry

AI-Generated Videos Are Already Displacing Actors and Livestreamers Across China’s Entertainment Industry

AI-generated digital avatars are now replacing human actors and livestreamers at scale across China’s entertainment sector, according to a report from The Decoder. These synthetic performers, powered by generative AI, are cutting production costs and operating 24/7 without breaks, reshaping the economics of content creation.

The shift is most visible in livestreaming e-commerce, where virtual hosts now sell products around the clock. Industry data shows that AI avatars can reduce labor costs by up to 90% compared to human livestreamers. Companies are deploying these avatars to host sales events, interact with viewers via text-to-speech, and maintain continuous broadcast presence.

Early Adoption Targets High-Volume, Low-Complexity Roles

The displacement is concentrated in roles that demand repetitive performance or long hours. Livestreaming hosts, background actors, and short-form video extras are the first to be replaced. AI avatars can mimic human facial expressions, lip-sync to scripts, and adapt to viewer comments in real time.

Chinese studios are producing “digital humans” with custom appearances, voices, and personalities. These avatars require a one-time creation fee, then operate without salaries, sleep, or contract negotiations. One production company cited in the report noted that a single AI avatar can replace an entire team of human actors for routine product demonstrations.

The Technology Is Improving Faster Than Expected

“The quality of AI-generated video has crossed a threshold where, for many commercial applications, viewers cannot reliably distinguish the avatar from a human.”

Advances in generative adversarial networks (GANs) and diffusion models have enabled near-photorealistic video avatars. Lip-sync accuracy and emotional expressiveness have improved dramatically since 2023. Chinese tech firms, including Tencent and Baidu, are investing heavily in these tools, offering enterprise APIs that allow media companies to generate customized avatars in minutes.

The report highlights that these avatars are not limited to static scripts. They can now handle dynamic interactions, including answering viewer questions and altering their sales pitch based on audience sentiment. This capability makes them viable for live, unscripted environments.

Wider Implications for the Global Media Workforce

While China is the current hotspot due to its large livestreaming economy and permissive regulatory stance, the trend has global implications. Hollywood and other international entertainment hubs are already experimenting with AI-generated background actors and voice talent. The technology’s rapid improvement suggests that white-collar roles in video production—such as script supervisors and casting directors—may also face disruption.

The report notes that displaced workers in China are already seeking retraining. Some former livestreamers are moving into AI avatar management, programming, or content strategy roles. However, the pace of job loss may outstrip the speed of reskilling, leading to near-term labor market friction.

Ethical and Legal Questions Remain Unresolved

Two major concerns are emerging. First is the issue of uncompensated use of human likeness. Several Chinese unions and actors’ groups are pushing for legislation that would require consent and payment when an AI avatar is trained on a specific person’s image or voice. Second is the potential for misinformation and fraud. Deepfake-quality avatars could be weaponized for scams, political propaganda, or identity theft.

“Without clear regulations, the same technology that replaces a livestreamer could also impersonate a politician or a company CEO.”

China’s Cyberspace Administration has introduced some guidelines requiring AI-generated content to be labeled, but enforcement remains inconsistent. Industry insiders predict that tighter rules will arrive within 12 to 18 months.

Bottom Line: A Tipping Point Has Arrived

AI-generated video is no longer a novelty in China—it is a production standard for cost-conscious media companies. The displacement of human talent is accelerating, driven by falling technology costs and rising performance quality. The global entertainment industry will likely follow a similar path, making this a critical moment for policymakers, unions, and media executives to prepare for widespread job transformation.

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