AI Tools for Businesses Pose Threat to TikTok Side Hustlers

Side hustlers on TikTok who rely on the platform’s e-commerce affiliate program may soon face intense competition from artificial intelligence. Brands and TikTok itself are increasingly using AI-generated videos that can imitate human creators’ content with unsettling accuracy.

These synthetic videos have been flooding users’ feeds during key shopping periods like Black Friday-Cyber Monday, when thousands of shoppable videos were posted by creators looking to make a profit through affiliate marketing.

According to Fabian Ouwehand, founder of social-commerce firm Socialscale.ai, these AI-generated videos are akin to ‘little billboards you see along the road out of the side of your eye.’ They can be lucrative: one video maker reportedly drove tens of thousands of dollars in product sales through TikTok’s affiliate program.

Some brands use AI to recreate multiple versions of a successful influencer post, while others rely on it to post hundreds of times per month without paying creators or sending them free samples. This raises concerns about the potential for synthetic influencers to provoke backlash and damage brand reputations if they’re perceived as insincere or deceptive.

Despite these risks, some brands are embracing generative AI for its potential benefits. Anish Dalal, an executive at social commerce firm Third, explained that his company uses AI tools ‘to basically test what works and what doesn’t’ before partnering with human creators on successful concepts. This approach allows them to maximize their return on investment while minimizing the risk of alienating users.

However, not all brands are convinced by the benefits of generative AI. Ashley Wright, CEO of TikTok Shop agency Social Tale, noted that some clients ‘are happy to use AI if it brings them more sales,’ but others worry about its potential impact on their reputation and customer trust.

The debate has gone beyond TikTok’s walls: marketers on social platforms like Meta are struggling to strike a balance between using AI to improve workflow efficiency and avoiding deceptive ads. Some brands see generative AI as a way to save time and money on user-generated content, while others view it with skepticism.

However, the main obstacle for generative AI on TikTok is that videos often veer into the uncanny valley, with synthetic characters sporting tinny computer-generated voices trying to sell products. In one example viewed by Business Insider, an AI-generated influencer showcased a product’s features in a way that defied real-world physics: using a power washer and propane torch to clean their driveway in seconds.

Even when labeled as such, these AI videos can be jarring for users who expect authentic human content from influencers. ‘Never seen green grass burn like that,’ one user commented on a video of an AI-generated influencer using a propane torch to de-weed their driveway. Others have expressed skepticism about the capabilities of products showcased in synthetic videos.

Bad AI can create marketplace quality problems, which are vital for TikTok’s long-term success as it competes with established e-commerce players like Amazon and Walmart. The company has grown into a formidable player since its 2023 US launch, tracking toward over $23 billion in US sales this year according to EMARKETER forecast.

TikTok Shop employee Nicolas Waldmann told Business Insider that some fraudulent sellers were using generative AI to create fake storefronts for non-existent products. This raises concerns about the potential for deceptive content and its impact on user trust. Robert Freund, an advertising and e-commerce lawyer, noted that having synthetic influencers claim they’ve used a product could run afoul of FTC requirements regarding honest opinions in testimonials.

Governing bodies like the European Union and New York state have developed laws requiring brands to disclose when synthetic characters are used in ads. TikTok’s seller documentation states that generative AI is permissible as long as videos are labeled, don’t misrepresent a product or imitate a real person, and respect intellectual property rights.

As the technology improves, more blue-chip brands may start embracing generative AI for its potential benefits. ‘Why spend so much money and time and effort on getting whatever [user-generated content] done when AI can do it for a tenth of the cost?’ Socialscale.ai’s Ouwehand asked.