Do AI Influencers Offer New Celebrity Endorsement Opportunities for Online Gambling

With the advent of generative AI (artificial intelligence) and its application to the creation of various forms of still art and, more recently, video, the lines between art and reality have become blurred.

The most incredible example of this cutting-edge technology is its impact on media and advertising, where before their origins were made public, marketing and technology companies created photo-realistic images of people and infiltrated the social media influencer sphere.

Lil Miquela Fooled the World

While she is far from the most lifelike AI avatar online today, Lil Miquela represents the genesis of this newly engineered breed of social media influencer.

Miquela Sousa, aka Lil Miquela, was created in 2016 by the US-based media company Brud. They toyed with mixing real-life products and marketing with an entirely virtual brand ambassador. In addition to her lifelike looks and well-executed lighting, they consider the time and effort put into creating “her story” a large part of the campaign's success.

They gave her a real name, a rich personality, and ethnic roots. They even went so far as to engineer real-life scenarios like her Instagram account being hacked and posting about world events like the Black Lives Matter movement, showcasing her empathy and connection to her fans.

According to Bloomberg, Lil Miquela earns about $10 million annually through various brand deals with companies like Samsung mobile, Prada, and Calvin Klein. This is easy to believe when considering that a single post on her Instagram account will set you back at least $10,000.

A New World of Social Media Advertising

It would be hyperbolic to say that the success of the virtual superstar has flooded the market with copycats, but this is an increasingly vital and vibrant side of social media.

According to Virtual Humans, a site dedicated to the growing number of and interest in non-traditional ambassadors, Instagram has more than 35 officially approved virtual influencers posting about their “lives” and “favourite products” around the clock.

Some other examples include:

• Lu Do Magalu: Created by the Brazilian online retailer Magalu, this influencer is the face of the company, boasting more than 7.4 million IG followers and generating close to $20 million in annual revenue.
• Aitana Lopez: This pink-haired lifestyle and fitness influencer is one of the more photo-realistic creations online. With her incredible photos of her travels across Europe, sipping Starbucks after gym in her car, or celebrating her 26th birthday with a cake, it is no wonder she has hundreds of thousands of social media followers and has had celebs slide into her DM’s.
• Kenza Layli: Created by Phoenix AI, this virtual Moroccan-themed creation holds the crown of the first-ever Miss AI, a Miss World-styled event exclusive to digital influencers. She currently boasts nearly 200,000 followers on Instagram alone.
• K/DA: Riot Games leaned into the virtual influencer space in a surprising way. They launched a virtual pop group comprising popular characters from their top esports games. The band blends Western pop and K-pop and has found great success, giving interviews about their newfound careers and partnering with songwriters from around the world.
• Guggimon: Not all virtual influencers are pretty or realistic. Guggimon is the mascot of the Super Janky company. He is a 3D rabbit-human hybrid who loves horror and partying way too hard. He is a very influential online character with over 1.3 million social media followers and events with stars like Steve Aoki.

These influencers range from the hyper-realistic to the overly ridiculous, proving once again that there is no one-size-fits-all when it comes to brand alignment and community interest.

Could This Be a Loophole for Gambling Companies?

In the online casino and sports betting world, stricter regulations around celebrity endorsements, sponsorships, and promotional events are beginning to limit advertising campaigns.

While cryptocurrency casinos and bookmakers are engaging the likes of Mike Tyson, Connor McGregor and even Snoop Dogg to promote their sites and new game releases, this door is closing fast for operators regulated in the UK and regions with similar advertising restrictions in the Gambling Acts.

Here are 4 ways that AI influencers could be the answer to these restrictions:

1. AI Influencers Are Not Human: Technically, you could argue that they do not fall under traditional definitions of "celebrities" or "public figures." This ambiguity could make them less likely to be scrutinised under regulations explicitly aimed at humans.
2. They Can Be Customed Not Appeal to Youth: These digital models can be designed to exclude characteristics that appeal to children or vulnerable groups, reducing the risk of violating rules. For instance, they can avoid traditional celebrity figures' youthful appearance, sex appeal, wealthy status or playfulness.
3. Designed to Meet Local Compliance Requirements: Since AI influencers are entirely controlled by their creators, their messaging can be tightly aligned with legal requirements, avoiding breaches while maintaining effective marketing strategies.
4. Outdated Laws and Regulatory Loopholes: The legislation may still need to account for AI-generated personalities, creating a grey area that allows their use without explicit violation. Regulators may need to update laws to encompass AI entities as the technology evolves and the use of these avatars becomes more commonplace.

AI and its many spinoffs are pushing the boundaries of what can be achieved through all forms of media and pressing lawmakers to stay on top of their game to ensure that they account for how this technology can be used to influence buying decisions. Until they decide how to categorise collaborations with virtual spokespeople, celebrity partnerships might still be available to online casinos and sportsbooks, just in an unexpected way.