Technological innovation is regularly pushing the boundaries of what we think is possible. Technology has made businesses better, faster, stronger. But, along the way, brands have also become more and more disconnected from their employees and consumers as digital interactions become the norm. Could digital avatars be the answer?
Digital avatars have rapidly evolved from the realm of science fiction into a tangible business asset. The global market for these AI avatars was valued at $21.50 billion in 2023 and is projected to reach a whopping $454.75 billion by 2031. These digital humans are already creating huge shifts in how companies across industries engage with their key stakeholders. But there is still confusion about what digital avatars are, how they work and what benefit they can have for businesses.
The Technology Behind The Magic
Chatting with a digital avatar can feel a bit like magic. They know all the right answers and deliver them with personality, and sometimes even a bit of sass. But it’s not magic; it’s a sophisticated blend of several technologies working seamlessly side-by-side. Then again, “any sufficiently advanced technology is indistinguishable from magic.” Let’s take a look under the hood of avatar technology.
Speech-to-Text
When you speak to a digital human, they’re not hearing you in the traditional sense. Instead, your words are transcribed into text by a STT programme, putting them in the correct input format for the avatar.
Natural Language Processing
NLP allows the avatar to understand and, importantly, interpret human language. This enables them to comprehend commands, questions and even nuances in conversation. This process is essential for truly engaging user experiences.
Large Language Models
LLMs are powerful AI models that provide the intelligence and contextual understanding that makes these avatars so groundbreaking. It is through LLM that avatars are able to come up with relevant, coherent and often witty responses. This is the key to dynamic conversations that go beyond a pre-programmed script.
Text-to-Speech
It is TTS technology that provides the avatar with a voice. It converts written text into realistic speech, with the ability to modulate and convey different emotions. This makes avatars sound almost human, encouraging more natural interactions.
Animation
All of the above is important and impressive but still leaves you with a faceless app. Animation is what truly brings the avatar to life. With sophisticated animation techniques, avatars can become scarily expressive, using subtle facial expressions and body language to communicate with us on an unconscious as well as conscious level.
Each of these technical processes happen within milliseconds, allowing users to have real-time conversations with digital avatars.
Becoming Human – The 3D Avatar Effect
Digital avatars can take many forms. They can be cartoonish, appearing like a character from some other world. They can be fully 2D, appearing only on screens. Where the real impact lies – and where HYPERVSN comes in – is in creating 3D, life-size, human-like digital avatars. In other words, digital humans. While AI gives these avatars their intelligence and conversational capabilities, it’s the integration of world-class holographic technology that brings them to life.
Personifying this futuristic avatar technology with an almost human, 3D holographic body adds a level of depth to their interactions. Now, instead of speaking to a screen, you find yourself in conversation with an entity that looks like you, moves like you, and has both personality and presence. This makes for more engaging, natural and impactful encounters that promote a deeper feeling of connection and satisfaction, counter to the often draining experience of dealing with screens.
These digital humans can take two primary forms:
Digital Characters are made up entities, designed with specific characteristics, voice and appearance to embody a brand.
Digital Twins are precise replicas of real-life humans. Think public figures delivering a speech to multiple locations at once, or a historical icon brought to life for immersive education.
Whether character or twin, these digital humans are ushering in a new age of interaction, where the power of artificial intelligence is augmented with the human touch.
Digital Avatars in Business
Digital avatars – and specifically, digital humans – may seem like some cool, futuristic tech that is fun to play around with but has no real utility. This is a huge misconception, especially in the business space. In fact, digital avatars are already helping brands grow in ways they might not have even imagined. Clients using our HYPERVSN SmartV Digital Avatar solution have reported benefits including:
- Reduced operational costs, as avatars are able to work 24/7, taking on some of the menial tasks of human workers.
- Increased efficiency due to round-the-clock service with no human errors.
- Boost in employee and/or customer engagement.
- An uptick in sales due to increased customer engagement, education and service.
- Greater customer loyalty and brand affinity as customers connect with avatars who deliver personalised support in over 100 languages.
Think of digital humans as smart, friendly assistants able to work 24/7 with no complaints. Who wouldn’t benefit from having one or two of those in their workforce? There are countless ways to put digital humans to work, with more being dreamed up each day. Here are some of the most popular uses for digital humans in business.
- Automated assistance: Handling routine tasks such as scheduling appointments, providing information and processing basic transactions.
- Interactive guidance: Providing step-by-step guidance to customers or employees for processes such as filling out forms or checking out of stores.
- Personalised recommendations: Product or service recommendations based on customer data and preferences, for example, personal styling.
- Interactive wayfinding: Guiding visitors through busy or complex spaces, like travel hubs and conference centres.
- Immersive learning: Enhancing educational experiences through interactive learning and roleplay.
- Real-time updates: Delivering up-to-date information and notifications, keeping customers informed about important changes or upcoming events, for example, flight delays.
The digital human is a truly universal tool for reshaping businesses. These avatars excel in the tasks above and more, revolutionising industries including retail, hospitality, events, healthcare, education, entertainment, travel, banking and manufacturing. Thanks to TV shows like Humans and Westworld, we might have allowed our minds to explore how digital humans can make our lives easier or more entertaining. Now, imagine what avatar technology could do for your business.
Are Digital Avatars Worth The Risk?
The immense potential of digital humans in business growth and efficiency is clear. But, like any groundbreaking technology, implementation is not without its challenges.
Ethics
The conversation around ethics in AI is vast, and digital humans are an AI-based innovation. The main ethical concerns centre around data privacy and bias in AI algorithms. Data privacy is key. In engaging with users, these digital avatars are collecting huge amounts of data, including sensitive personal data in some cases. Businesses must be clear on how this information will be used, stored and protected, and be transparent with their audience to avoid any breach of trust. It is now well-understood that artificial intelligence replicates, and often amplifies, the biases of the real world. This is due to skewed, non-representative or incomplete data. Businesses must pay close attention to their datasets and algorithm design to ensure fairness and inclusion are foundational.
Cost
Implementing sophisticated avatar technology across your business can require a huge financial investment. This is partly due to the upfront cost of developing the advanced technology detailed above, which would require a highly skilled and dedicated in-house team. However, the cost of maintenance and updates must also be taken into account. This huge financial outlay can deter businesses from investing in digital avatars, however, plug-and-play solutions like the HYPERVSN SmartV Digital Avatar offer an alternative. By working with innovation partners with already established AI and holography tools, businesses can reap the benefits of deploying digital humans for a fraction of the cost of creating everything in house.
The Uncanny Valley
The ‘uncanny valley’ refers to the feeling of unease – or even revulsion – humans experience when interacting with a being that seems almost human…and yet, is undoubtedly artificial. There is a delicate balance to be struck, where digital humans appear convincingly human-like, without triggering this negative response in users. Subtle imperfections in motion, facial expressions and overall realism of a digital avatar can shift a would-be immersive experience into the uncanny valley. This is why attention to detail, a focus on natural movement and behaviour, and continual testing and refining are crucial when designing digital humans.
Trust
For digital humans to be truly impactful in your business, employees and consumers need to trust them. Just like with human relationships, human-machine relationships generate trust when there is clarity and reliability. Businesses must be transparent about the purpose – or ‘role’ – of their digital humans. In fact, it’s good practice to write out a job description for them, as you would an employee. This not only helps with their programming but also with internal buy-in. As mentioned earlier, users must be clear on what data digital avatars have access to and how they will use it, but also on the parameters of the intelligent assistant’s support, to avoid frustration or negative customer experiences. Once users are up to speed on what the digital avatar is meant to do, it’s important that their expectations are met consistently. Errors or failures can quickly erode trust in, not just the avatar, but in your brand as a whole. On the other hand, it’s amazing how quickly users relax into conversation and open up when avatars delight them with accurate, useful information.
Any technology with the potential to change life as we know it comes with a level of risk, especially for early adopters. Are digital avatars worth the risk for business owners? The numbers speak for themselves. McKinsey reported a 50% reduction in operational costs for brands using digital avatars in customer service. Forrester identified a 65% increase in customer satisfaction for brands using AI avatars. And customers are ready for this new era of interaction. Gartner found that 70% of consumers are more likely to interact with a digital human if it can provide personalised responses. According to Optimizely, 60% of consumers are happy for retailers to use AI if they respect their privacy.
Digital Humans: Your Next Hire?
So, you’ve decided that digital avatars are right for your business. What next? With so many hurdles and considerations, implementation can seem like a distant dream for forward-thinking business leaders. But it doesn’t have to be. If digital humans seem like the right move for your company, we recommend asking yourself three questions:
- Do we have a clear objective?
- Do we have the right team in place?
- Are we technically capable?
There’s no right and wrong here but the answers to these questions will help you identify what to do next. To further support you through assessing business readiness and gaining much-needed internal buy-in, we created a free ebook. If you’re a little further along in the process and ready to speak to our sales team to book a demo, get in touch here.
Digital avatars are set to be one of the most meaningful new tools for businesses brave enough to step into the future, now.
