Human Touch Triumphs: AI Salespeople Fall Short in Livestream Sales

AI Salespeople Struggle to Match Human Performance

A groundbreaking study from the UBC Sauder School of Business has revealed that AI-powered 'digital streamers' are significantly underperforming their human counterparts in livestream product promotions. The research, published in Information Systems Research, analyzed sales data from Tmall.com, one of the world's largest e-commerce platforms 1

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The study compared sales of 328 products, with 72 promoted by digital streamers, 74 by human streamers, and 182 without any streamer. The results were clear: human streamers significantly boosted sales, while digital streamers showed only a marginal improvement over having no streamer at all 1

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The Human Edge in E-commerce

Dr. Yanwen Wang, co-author of the study, emphasized the surprising ineffectiveness of digital streamers: 'People assume that if businesses are using digital streamers, they must be doing well. But they aren't, at least not in their current incarnation' 1

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This revelation comes at a time when the creator economy is thriving, with millions of small businesses and entrepreneurs relying on personalized, short-form video content to connect with customers. The research suggests that the human touch in these interactions remains crucial for driving sales 3

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Source: Inc.

Improving AI Performance

The researchers didn't stop at identifying the problem; they also explored potential solutions. In a second part of the study, they tested different versions of digital streamers, gradually adding features to make them more human-like 1

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Two factors made the biggest difference:

1. Form realism: How human-like the streamer appears
2. Behavioral realism: How well the streamer interacts with viewers

The most effective upgrade was giving digital streamers the ability to answer questions in real-time, leading to a 25% increase in products sold and an 86% jump in revenue 1

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Source: Tech Xplore

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The Future of AI in Sales

While digital streamers currently lag behind their human counterparts, they do offer one significant advantage: cost-effectiveness. Unlike humans, AI streamers can operate 24/7 without breaks or salaries 1

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Dr. Wang suggests that the future may lie in a hybrid approach, combining the strengths of both human and AI streamers. For instance, a human could monitor several AI streamers simultaneously, intervening to answer complex questions when necessary 1

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As AI technology continues to evolve, it remains to be seen how long it will take for digital streamers to match the sales boost achieved by human streaming salespeople. For now, the research clearly indicates that the human touch remains a crucial factor in driving e-commerce sales through livestreaming.🟡 centrifugal=🟡