China’s AI actress Fang Taozi tests the limits of virtual endorsements

AI-generated performers in China are moving from short-form drama into brand promotion, with the fictional actress Fang Taozi showing how a synthetic character can be developed into a social-media personality and advertising vehicle. The shift offers producers and brands control over appearance, scheduling and scripted behaviour, but has intensified concerns about work for human actors and the credibility of endorsements made by characters that cannot use a product.

Fang Taozi came to prominence through “The Laid-off Girl,” an AI drama that launched on Douyin on June 12. The series follows a small-town woman who moves to the fictional city of Shangnan to pursue modelling work. By August, it had surpassed 360 million views, and Fang Taozi had more than 510,000 Douyin followers as of Aug. 25.

Her separate account posts lifestyle videos about cooking, fitness and commuting, adopting the everyday format used by human influencers. Her listed Xingtu advertising rates ranged from 168,000 yuan for a video of up to 20 seconds to 258,000 yuan for one longer than a minute, although listed prices do not necessarily represent completed transactions or earnings.

Cosmo Crush previewed Fang Taozi on its official Weibo account on Aug. 27. The post drew backlash, and Cosmopolitan China subsequently hid comments on its Weibo posts, according to Concall. Critics saw the fashion appearance as a disregard for human actors, while others viewed it as evidence that virtual characters were entering mainstream fashion.

The most immediate test of AI-led promotion came in late July, when contact-lens brand Nutnutlook released a Douyin advertisement in which Fang Taozi endorsed coloured contact lenses. The ad was later removed amid controversy over whether an AI character could credibly vouch for a product’s comfort or quality. Sixth Tone reported that neither Nutnutlook nor World Media Film and TV Culture, Fang Taozi’s creator, responded to the controversy.

The episode raised a specific regulatory question. Ma Lihong, a senior partner at Beijing DHH Law Firm, said AI avatars are not legally people or advertising endorsers under Chinese law. But a first-person claim about experiencing a product could still amount to false advertising, for which advertisers remain responsible. Coloured contact lenses are Class III medical devices in China, and actors are prohibited from recommending such devices in advertisements.

The commercial attraction is clear: production teams can direct AI figures with text prompts, revise scenes without reshoots and retain a consistent character across settings. Some industry reports estimate AI short-drama production costs at around 80,000 yuan per minute, though costs vary by production method and complexity. The China Netcast Association reported that 367,000 micro short dramas launched across platforms in the first half of the year, with AI short dramas accounting for more than 74%.

For human performers, the expansion has sharpened anxiety over shrinking work. Li Xiaolong, a Shanghai Theatre Academy student who stars in “My Dual Control,” said day-rate jobs that once paid more than 1,000 yuan had become hard to obtain. A friend told him fewer actors were working in Hengdian, Zhejiang province, with some leaving the profession or taking costumed jobs at tourist attractions.

Some viewers still favour the realism and nuance of human performance. Yet Hou Wenjie, secretary-general of the Shanghai-based Yu Ce Think Tank, said the commercial value of AI actors had moved from proof of concept to monetisation, and expected recognisable AI characters to expand further into lifestyle and vlog-style content. That growth will require greater attention to virtual-person advertising labels, likeness rights and the authenticity of commercial claims.