The market for digital avatars is exploding, as forward-thinking businesses rush to differentiate themselves from competitors with this futuristic technology. Valued at $21.50 billion in 2023 and projected to reach $454.75 billion by 2031, the growth of AI avatars in business is mainly driven by the retail sector, which accounted for 26% of the market in 2023. This is no surprise, as using digital avatars to help navigate e-commerce sites, recommend promotional offers, address complaints and answer FAQs is an obvious application. Driving customer engagement, satisfaction and loyalty with avatars that offer fast and reliable support along with personalised recommendations is a no-brainer. But this use of AI digital humans is a somewhat natural progression from chatbots – the same tech, the same service but now with a smile.
Thinking of a digital avatar, particularly the ever-evolving 3D digital humans, as simply a chatbot with a body can lead businesses to consider them only for the most obvious tasks. And while 3D avatars for business are an excellent choice for day-to-day customer service, appointment scheduling and other menial tasks, this only scratches the surface of what they can do. When business leaders look at digital humans with fresh eyes, recognising them as a unprecedented tool for immersive engagement, a whole new world of applications emerges. Below are five of our favourite innovative ways that brands are putting digital humans to work.
1. Personal Shopper
Digital humans are already well-loved in the retail space for the personalised service they can provide for consumers, but this can be taken a step further. Drawing on the wealth of fashion and style information across the internet and combining this with customer purchase history, preferences and a retailer’s catalogue, digital humans can become the personal shopper that always gets it right. Not only will this drive foot traffic in-store, it will undoubtedly lead to boosted sales, customer loyalty and it will get customers talking, building brand awareness and virality.
2. Immersive Entertainment
3D avatars in a business setting don’t always have to be the help. They can also be the entertainment! At CES 2025, we unveiled our Fortune Teller AI in the form of Nova, a wise mystic who draws on astrology, tarot and more to share sage advice with all who seek her out. Built on HYPERVSN Digital Avatar technology, Nova went beyond passive entertainment and transformed event attendees into active participants in an immersive experience. This kind of activation creates a powerful, positive brand experience that allows you to connect with customers on a deeper level. A digital human could make the perfect expert mixologist, crafting personalised cocktails for party guests, or a riveting storyteller, enchanting audiences with tall tales. Digital avatars as entertainment are a perfect recipe for a truly once-in-a-lifetime experience.
3. Always-On Assistant
Some of the biggest customer complaints in travel include long wait times for assistance, difficulty navigating spaces and automated systems that don’t give them the support they need. 3D avatars present an ideal solution for businesses in travel and other industries where wayfinding is crucial. Replace static signs and aid overworked human staff with digital humans who can offer 24/7 assistance with a smile. Imagine the difference these intelligent avatars can make to tired travellers making their way through a quiet station at night or busy execs arriving at an office lobby for a meeting. Not only is this constant access to support impressive, but this engaging entity who can communicate in multiple languages creates a positive – and memorable – first impression that leaves a lasting positive association. It’s a surefire way to boost customer satisfaction and reduce the load on exhausted employees.
4. Roleplay Character
The best way to learn is by doing – this is a widely accepted truth. However, it simply isn’t possible or safe to put this into practice all the time. Even while many professions accept that juniors need to learn on the field, students often leave their educational institution feeling that their career skills are somewhat lacking. Enter digital humans. They are revolutionising the education industry through immersive learning that uses them as roleplay characters for inexperienced students. Trainee doctors can now triage digital patients, building not only their skill but their confidence. Junior sales staff can hone their negotiation skills without the looming fear of losing their company money. Soon-to-be therapists can work with avatar clients to build experience in a low stakes environment. This level of interactive learning, facilitated by a believable and responsive 3D avatar, allows for safe experimentation, immediate feedback, and a deeper understanding of complex situations. Educational institutions employing this technique can set themselves apart as delivering a more engaging, memorable and effective learning experience.
5. Employee Advocate
3D avatars in business are not just for customer facing roles. They can present a groundbreaking tool for your staff too. This is particularly attractive in complex operational environments like factory floors or manufacturing store rooms. An employee guide in the form of a digital human can support workers, especially new joiners, in everything from locating items in a warehouse to troubleshooting faulty machinery to getting to grips with new software. In these spaces where every second counts, digital humans can help streamline workflows and reduce errors. This is also a huge win for safety, with avatars on hand to ensure the correct processes are followed and accurate, up-to-date information is always on hand.
While the use of digital avatars in customer service and assistance roles remains compelling and effective, it’s when we think outside of the box that we can truly start to unleash the huge potential of 3D avatars in business. The future of business interaction is no longer just about efficiency; it’s about creating memorable, impactful and truly human-like connections, powered by cutting-edge technology.
