Key facts
- AI-generated avatars known as "Xiaohai" are reportedly exploiting elderly consumers on Chinese short-video platforms.
- The virtual characters use fabricated tales of poverty and hardship to drive sales of products like health supplements.
- Some accounts have garnered up to 600 million cumulative views.
- A 79-year-old woman attempted to travel to meet a Xiaohai avatar, believing the character to be real.
- Operators targeting middle-aged and elderly consumers could earn significant daily profits.
- Legal experts warn of potential liability for using AI characters and fabricated stories to manipulate consumers.
AI-generated avatars known as "Xiaohai" have become popular on Chinese short-video platforms, allegedly using fabricated stories of poverty and hardship to manipulate elderly viewers into purchasing products. These virtual characters, often depicted as teenage boys, address viewers as "aunties" and "mothers" to build emotional connections and drive sales of items like health supplements. Some accounts have amassed hundreds of millions of views, and a few viewers have been so affected that they attempted to meet the fictional characters. While platforms are taking action against some accounts and China has regulations requiring AI content to be labeled, similar videos continue to appear.