What: The adoption of AI-generated influencers and marketing tools by major retailers is reshaping the creator economy, enabling scalable, customizable campaigns while raising new questions about authenticity and industry standards.

Why it is important: The rise of AI influencers signals a fundamental shift in retail marketing, where efficiency and control are weighed against the need for genuine connection and transparency with audiences.

Major retailers such as H&M, Mango, and Magalu are increasingly adopting AI-generated influencers and generative AI marketing tools, fundamentally transforming how brands create, scale, and personalize content. These digital avatars and AI-driven campaigns offer brands unprecedented efficiency, cost savings, and control over messaging, allowing for rapid adaptation and customization across markets. However, this shift is also raising important questions about authenticity, consumer trust, and the future role of human creators in the influencer economy. While AI influencers can deliver polished, studio-quality content at scale, data shows that human influencers still drive higher engagement and emotional connection. The trend is prompting brands and agencies to rethink disclosure, ethical standards, and the balance between technological innovation and genuine storytelling. As AI-driven content becomes more prevalent, the retail industry faces the challenge of leveraging these tools to enhance marketing impact while maintaining transparency and building lasting relationships with customers.

IADS Notes:

The rapid rise of AI influencers and generative AI in retail marketing is reshaping the industry’s approach to content creation, customer engagement, and operational efficiency. As reported by Inside Retail (March 2025), H&M’s use of AI-generated digital twins for campaigns highlights both the creative potential and ethical considerations of this technology. WWD (October 2024) and BoF (November 2024) document how brands like Mango are leveraging AI avatars to accelerate advertising and reduce costs, signaling a shift in the modeling and creative industries. The Robin Report (December 2024) notes that major retailers—including Magalu (Magazine Luiza)—are at the forefront of AI adoption, using these tools to personalize shopping experiences, boost engagement, and drive sales, especially during key periods like the holiday season. Collectively, these developments show that while AI offers efficiency and scalability, the retail sector must balance innovation with transparency, ethical standards, and the enduring value of authentic human connection to maintain trust and relevance in a rapidly evolving digital landscape.

The rise of the AI influencer