A computer-generated image shows Ling working with a photographer's team. [Photo provided to China Daily]

Early this year, the World Health Organization teamed up with a digital avatar, Knox Frost, to help spread information about COVID-19 to younger audiences. Frost is a 20-year-old man from Atlanta with over 1.1 million Instagram followers.

Bilibili, a Chinese video-streaming website that's regarded as a haven for youth subculture, announced that 30 virtual entertainers from China and Japan, including Kizuna Ai, will perform in its 11th Bilibili Macro Link event in Shanghai on Dec 19.

Bilibili's CEO Rui Chen said in a previous statement, "We believe that there is tremendous potential in the synergy between virtual idols and Bilibili's multiple business segments, including live broadcasting, advertising, games, tie-in products and offline events."

Although still in an early phase in China, the virtual-influencer industry has captured the interest of a growing number of domestic internet companies, agencies and investors.

Chen Zhe, with the venture capital company Frees Fund, tells business-and-technology portal TMTPost that the rise of virtual influencers will bring challenges and opportunities.

"On one hand, they have great advantages. Unlike human influencers who will get old, or may become embroiled in some sort of scandal, digital influencers are young, flexible, manageable and controllable," he says.

"On the other, the market needs more localized virtual influencers whose content design is tailored to connect with Chinese and more modes of commercial collaboration need to be explored."

Chen Yan points out that influencers like Ling are virtual, but their influence is real.

And they will bring big changes to the entertainment and fashion sectors in the near future.