1. Introduction and Executive Summary

Synthetic, AI-powered avatars emerge as a cost-effective and scalable solution for entrepreneurs crafting professional pitch videos. The competitive persuasive effectiveness and brand impact of these synthetic avatars, when juxtaposed with traditional organic human spokespersons, however, has not been demonstrated. This research delves into this very comparison, scrutinizing the viability of avatar vs human spokesperson pitch videos through a controlled experimental study.
The study tests identical entrepreneurial pitches for a fictitious plant shop seeking investment. These pitches were crafted using both real actors and state-of-the-art AI-generated avatars from Synthesia. A diverse pool of over 500 participants engaged with one random version of the pitch, after which each respondent evaluated the video’s persuasiveness and the overall impression of the brand it represented.
The findings reveal that synthetic avatars hold their ground against human videos in terms of persuasiveness and the ability to forge a compelling brand impression. This success is driven by the advanced animation programming, allowing the avatars to bypass the risks of the uncanny valley phenomenon. Over half of the viewers were unable to identify their synthetic avatar as synthetic, underscoring the advanced state of current avatar technology.
However, the study also uncovers a critical competitiveness distinction: when participants perceived the pitch as AI-generated, there was a significant decrease in ratings across metrics. This underscores the persisting challenges in avatar technology, particularly in overcoming the uncanny valley effect. Nevertheless, as technology advances, propelled by massive investments and corporate buy-in, it is anticipated that these negative perceptions will gradually diminish.
With continuous enhancements aimed at mitigating the uncanny valley effect, and because of the time and cost savings the avatar platform affords, synthetic avatars, offered by a variety of companies, are on track to offer a formidable challenge to human spokespersons and a potential asset to entrepreneurs seeking pitching advantages. This research thus offers fresh and timely insights into an emerging strategy in entrepreneurial communication, highlighting a significant shift in the landscape of business presentations and marketing, and furthering our understanding of the developing sub-genre of entrepreneurial digital oratory.