Picture of the Week Vol. 20

Research evidence excerpt

Picture of the Week Vol. 20

Authenticity risk remains the key constraint: This is the tension we have been most focused

on in our Imagine work, where RBC's TIMT analyst Matthew Swanson flagged that "the

biggest challenge for AI-generated content will be a lack of authenticity, a widely known

core value for Gen Z in particular." The market data validate this concern. Sponsored posts

by human influencers still generate 2.7x more engagement than AI counterparts when the

sponsorship is the unit of measure, and 65% of US consumers say they are unlikely to purchase

based on a virtual influencer recommendation. Trust in AI influencers remains moderate at

best, with only 15% of respondents rating their trust at 7/10 or above, and 39% indicating

that perceived authenticity significantly shapes their buying decisions. Coca-Cola's entirely AI-

generated "Holidays are Coming" ad is instructive here; while innovative, it was not well received

by consumers precisely because of its synthetic feel —a dynamic our Consumer Staples Imagine

report noted when observing that "real becomes the new luxury" in a synthetic world, creating

structural pricing power in premium segments for brands that protect their human authenticity.

This reinforces something we have said repeatedly: brand trust is a durable competitive moat in

consumer staples and it cannot be shortcut. The practical takeaway is not that virtual influencers

displace human ones wholesale. The better playbook is a thoughtful blend; virtual personas

for consistency, cost efficiency, scandal-proofing, and always-on digital presence, with human

influencers retained for high-trust, purchase-intent contexts. We think companies in beauty,

personal care, and premium food & beverage that get this balance right earliest stand to build