Abstract

Artificial intelligence (AI)-based virtual influencers are now frequently used by brands in various categories to engage customers. However, little is known about who the followers of these AI-based virtual influencers are and more importantly, what drives the followers to use AI-based virtual influencers. The results from a survey support the notion that compensatory mechanisms and the need to belong play important roles in affecting usage intentions of AI-based virtual influencers. Specifically, the study finds that usage intentions are mediated and moderated by compensatory mechanisms that arise from the perception of AI-based virtual influencers’ functional benefits and existential threats to human identity. Furthermore, the need for belonging moderates the effects of the following status (following versus non-following) on perceived personalization benefits of AI-based virtual influencers and behavioral intentions to use AI-based virtual influencers. This study provides important implications for academia delving into the social, cultural, and philosophical implications of AI-based virtual influencers for human societies as well as for brands that plan to use AI-based virtual influencers and gain a better understanding of their customers in AI-driven digital marketing.