For nearly a decade, China's "Lipstick King", Li Jiaqi, has been an icon of livestream selling. He helped transform what was once a niche sales method into one of the country's most significant retail channels.

Currently, despite a slowdown in livestream selling growth and the impact of artificial intelligence (AI), Li Jiaqi remains confident that the sector will continue to rely on human presenters. "Growth may no longer be as explosive as four or five years ago, but it is entering a stable and healthy phase", Li said.

Li Jiaqi commands a following of over 100 million, having gained fame for selling billions of USD in cosmetics. He began livestreaming in 2016. Two years later, in 2018, he won a lipstick sales competition against billionaire Jack Ma, earning him the moniker "Lipstick King" of China and solidifying his status as an e-commerce icon in the country.

Livestream selling currently faces a weakening consumer environment. China's retail sales in August increased by only 0,4% compared to the same period last year, a decrease from 0,6% in July. For the first eight months of the year, a 1,1% increase reflects stagnant household spending.

Despite this, livestreaming has transformed shopping habits in China. The proportion of online sales within total retail sales is projected to exceed 36% by 2025, an increase from nearly 18% in 2021.

"The industry is still growing, but it is much more challenging now", stated Ashley Dudarenok, founder of digital consulting firm Chozan. "Sellers must compete much more fiercely for consumers' wallets. Customers also have high expectations, yet they are only willing to spend less", Dudarenok noted.

In this context, AI is rapidly helping sellers reduce costs. AI presenters are increasingly favored by e-commerce platforms, costing only a fraction of what human presenters do.

Since 12/2025, the e-commerce platform JD.com has been offering free AI presenter services to online store owners on its platform. They reported a surge in the adoption rate of this service within just three months. According to JD, AI presenters can help reduce livestream operating costs by 80%-90%.

Li Jiaqi during a livestream session in Shanghai, 9/2026. Photo: Reuters

While acknowledging that AI is transforming the e-commerce industry, Li Jiaqi believes the technology still has limitations. "I do not believe AI can replace human presenters. Artificial intelligence is an older version of me, while the me of today can offer new ideas and perspectives", he stated.

Li Jiaqi views AI as a tool to enhance efficiency rather than replace presenters. For instance, an AI version of himself could continue interacting with viewers at night while he rests.

He is even more skeptical about AI's ability to influence purchasing decisions. "Humans think continuously. AI also thinks, but it is based on what humans have thought before. That is why I believe AI and livestream e-commerce complement each other. AI will not replace presenters", he asserted.

Others in the industry share this perspective. Lu Lin, a 23-year-old presenter at Romomo, a livestream company in Shanghai, noted that AI still struggles with building credibility and providing nuanced insights. These are crucial factors that drive sales.

For example, if a customer provides their height and weight, an AI might respond: 'You should wear size M or L'. "However, a human seller would offer more subtle advice. The issue is not just answering questions; building trust with customers is also very important", Lu Lin explained.

The debate surrounding this issue is ongoing among regulators and consumers. Regulations requiring clear labeling of AI-generated content will take effect from 9/2025. Meanwhile, Douyin, China's version of TikTok, has banned entirely AI-generated livestreams and mandates sellers to disclose their use of virtual presenters.

Some influencers have also faced negative reactions after revealing they used AI to appear in livestreams. "I think flesh-and-blood livestream presenters are 'at risk of extinction'", Dudarenok commented.

However, she suggested that as AI-generated content becomes more prevalent, consumers might return to seeking human authenticity. "I do not think they will disappear completely, but less successful individuals must either utilize better tools or change professions", she added.

Zhang Junling, Vice President of Romomo, stated that profitability is becoming a priority for brands. As profit margins narrow, reliance on famous presenters is decreasing. Intense competition makes factors such as large-scale systems, technology, and operational capabilities more crucial.

"Competition is no longer just between individual livestream channels or presenters", Zhang concluded.

Ha Thu (according to Reuters)