Avatar effect of AI-enabled virtual streamers on consumer purchase intention in e-commerce livestreaming

In recent years, digital avatars employed as virtual streamers are experiencing a surge in popularity in e-commerce livestreaming. However, the influence of the avatars' anthropomorphic features on their effectiveness as virtual streamers remains unclear. This study investigates the avatar effect of artificial intelligence-enabled virtual streamers, wherein their form and behavioral realism interactively affect consumer purchase intention. Three lab experiments with 604 participants were conducted to test this effect and its underlying mechanism and boundary conditions. Based on the findings, behavioral realism positively affects consumer purchase intention only when the virtual streamers' form realism is low. Parasocial interactions underpin this avatar effect, which only holds when consumers exhibit a communal relationship norm orientation. When consumers possess an exchange relationship norm orientation, the effect of behavioral realism becomes positive regardless of the level of form realism. Overall, our study proposes an avatar effect in livestreaming, and extends the literature by offering insights on the interactive effect of the anthropomorphic features of human-like avatars (as virtual streamers) on the effectiveness of e-commerce livestreaming. By revealing the mechanisms and boundary conditions of this effect, our conclusions offer guidance for companies in developing appropriate combinations of form and behavioral realism for the avatars of virtual streams while considering consumer characteristics.